Clariant adjusts full-year earnings on forex, demand concerns

05 September 2011 08:03  [Source: ICIS news]

SINGAPORE (ICIS)--Clariant has adjusted its full-year earnings forecast because of unfavourable foreign exchange rate movements and a weakening global economy, the Swiss-based speciality chemicals maker said on Monday.

The company is now expecting its sales to total Swiss francs (Swfr) 7bn-7.2bn ($8.86bn-$9.11bn) for the full year of 2011 compared with a previous estimate of Swfr7.8bn-8bn, the company said in a statement.

Clariant’s pre-exceptionals earnings before interest, tax, depreciation and amortisation (EBITDA) margin should now reach between 12.8% and 13.2% for the full-year period, the statement said.

This is compared with its previous forecast of 13.5-14.5%.

“The first two months of the second half [of the] year have been marked by a continuing unfavourable development of foreign exchange rates and increasingly difficult economic conditions, negatively impacting Clariant’s operating business,” the statement said.

Looking ahead, Clariant’s EBITDA margin target before exceptionals at above 17% for 2015 has been confirmed, CEO Hariolf Kottmann said in the statement.

“This is based on an improvement in our competitive position resulting from the global asset network optimisation programme, further savings as well as a successful integration of Sud-Chemie, which will substantially contribute to the group’s performance in the coming years,” Kottmann added.

Clariant completed its acquisition of 96.15% of Germany’s Sud-Chemie on 21 April this year.

($1 = Swfr0.79)

By: Nurluqman Suratman

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