Swiss Clariant Q2 net profit surges 60% on Sud-Chemie integration

27 July 2011 06:59  [Source: ICIS news]

SINGAPORE (ICIS)--Switzerland’s Clariant said on Wednesday that its net profit in the second quarter of 2011 surged by 60% year on year to Swiss francs (Swfr) 40m ($50m, €35m), reflecting its acquisition of Sud-Chemie.

Sud-Chemie’s earnings were incorporated in the financial results for May and June, it said in a statement. Clariant completed the acquisition of 96.15% of Sud-Chemie on 21 April 2011.

Clariant’s second-quarter sales, meanwhile, slipped by 1% year on year to Swfr1.87bn with its earnings before interest, tax, depreciation and amortisation (EBITDA) before exceptional items declining by 9% to Swfr241m, the company said.

Sud-Chemie’s contribution for the June-quarter was Swfr216m to sales and Swfr34m to EBITDA.

“The recently acquired Sud-Chemie has met our expectations in the first two months of consolidation and the integration into Clariant is progressing as planned,” company CEO Hariolf Kottmann said in the statement.

Clariant’s operating profit or EBIT for the three months to June, meanwhile, surged by 31% year on year to Swfr163m, Clariant said.

In the first half of the year, the company said its net profit more than quadrupled to Swfr160m from just Swfr35m in the same period in 2010, with operating profit surging by 84% to Swfr364m.

Sales for the six-month period, however, slipped by 3% to Swfr3.59bn, while EBITDA before exceptional items increased by 4% to Swfr518m, it said.

Clariant said it expects “a more difficult but nevertheless solid business environment” in the second half of the year that will be “characterised by softening demand”.

However, the company confirmed its sales guidance of Swfr7.8bn-8.0bn and an EBITDA margin of 13.5-14.5%.

($1 = €0.69, $1 = Swfr0.80)

By: Pearl Bantillo
+65 6780 4359

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