Clariant posts 42% fall in Q2 net profits

29 July 2008 09:20  [Source: ICIS news]

LONDON (ICIS news)--Clariant’s second-quarter net profits from continuing operations fell 42% year on year due to negative currency effects and higher restructuring and impairment costs, the Swiss specialty chemicals producer said on Tuesday.

Net income from continuing operations amounted to Swiss francs (Swfr) 51m ($49m/€31m) in the second quarter of 2008, compared with Swfr88m during the same period last year, it added.

Consolidated sales from continuing operations increased by 5% in local currencies to Swfr2.12bn during the quarter, but fell 3% in Swiss francs terms, it said.

This was a result of higher selling prices across all businesses and slightly lower volumes at group level, the company added.

Operating income dropped to Swfr118m, from Swfr127m in the second quarter of 2007.

“Clariant had a solid first-half year despite an increasingly difficult environment. We were able to compensate for an unprecedented 11% hike in raw material costs with price increases and to improve our operating margin,” said CEO Jan Secher.

“Looking forward we expect an even more difficult environment marked by an unbroken trend of raw material cost increases, a weakening macroeconomic environment and unfavourable foreign exchange rates,” he added.

Clariant said it would continue to implement price increases. It added that it expected an improved operating margin before exceptional items and continuing strong cash flow from operations in 2008.

($1 = €0.63/ $1 = Swfr1.03)

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By: Hilde Ovrebekk
+44 20 8652 3214

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