Clariant Q3 net income rises to Swfr78m on prices

04 November 2008 10:38  [Source: ICIS news]

LONDON (ICIS news)--Clariant’s third quarter net income rose to Swiss francs (Swfr) 78m ($66.7m/€52.7m) from a Swfr51m loss in the same period last year due to higher selling prices, the Swiss specialty chemicals firm said on Tuesday.

Sales were down to slightly Swfr2.09bn from Swfr2.11bn, while operating income surged to Swfr119m from Swfr5m in the third quarter last year.

“Clariant has been able to improve its operational performance in a difficult macroeconomic environment by decreasing costs and increasing prices,” said CEO Hariolf Kottmann.

The company said volume growth was challenged by weaker demand in some businesses and regions but that this was compensated for by higher selling prices.

The pigments and additives division’s sales rose 3% in local currencies, sales in the masterbatches division increased 6% in local currencies, but fell 11% in Swiss franc terms due to currency effects. Sales in the functional chemicals division rose 15%.

In the textile, leather and paper chemicals division sales fell 3% in local currencies and 10% in Swiss francs due to deteriorating market conditions during the third quarter.

Clariant said that for the full year it expected an improved operating margin before exceptional items of between 6.5% and 6.8% and a strong cash flow from operations.

“Going forward, we will accelerate our restructuring efforts and focus on operational excellence in order to significantly increase profitability and respond to expected negative market developments resulting from an extremely challenging macroeconomic environment”, said Kottmann.

($1 = Swfr 1.17, €1 = Swfr 1.48)

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By: Hilde Ovrebekk
+44 20 8652 3214

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