Clariant posts marginal rise in Q1 op income

30 April 2008 10:04  [Source: ICIS news]

MUMBAI (ICIS news)--Clariant has posted a marginal year-on-year rise in its first-quarter operating income to Swiss francs (Swfr)140m ($134.6m/ €86.9m) on increased pricing and strict cost control, the Swiss specialty chemical company said on Wednesday.

"Clariant increased prices by 4% and was able to fully offset a 9% increase in raw material costs," the company added.

For the quarter, the company’s sales were down 2% to Swfr2.1bn and its net income fell 52% to Swfr41m, due to higher restructuring costs and unfavourable currency effects, it said.

The main growth driver was the coatings business, which benefited from robust demand from the automotive industry in Europe and strong growth in Asia, the company added.

Geographically, Clariant said demand in Asia and Latin America gained momentum, while sales in Europe were slightly lower.

The textile, leather and paper chemicals division was negatively impacted by the difficult market environment and its sales were down 11%.

"With the benefits of the operational performance improvements already underway, Clariant expects an improved operating margin before exceptional items and continuing strong cash flow from operations in 2008," it said.

Shares of the company were up 10.45% to Swfr10.52 at 8.29 GMT on the Swiss Exchange.

($1 = €0.64/ $1 = Swfr1.04)

By: Isha Jha
+65 6780 4359

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