31 October 2011 07:09 [Source: ICIS news]
SINGAPORE (ICIS)--Switzerland-based specialty chemicals maker Clariant reported on Monday a 25.7% year-on-year drop in its third-quarter net income to Swiss franc (Swfr) 81m (€57.4m, $69.8m), despite higher sales, partly because of unfavourable foreign exchange rate movements.
“Sales were only 9% higher as the Swiss franc continued to strengthen against most major currencies especially in the first half of the third quarter,” it said.
The firm’s sales rose to Swfr1.87bn in July-September, while earnings before interest, tax, depreciation and amortisation (EBITDA), before exceptional items, slipped by 7% to Swfr216m, the company said in a statement.
Its EBITDA before exceptional items includes a negative currency impact of Swfr73m, Clariant said.
Clariant’s EBITDA margin before exceptional items reached 11.6% in the third quarter, compared with 13.6% a year ago, it said.
Sales growth was driven by higher prices and the acquisition of Germany’s Sud-Chemie, the company said.
Clariant completed its acquisition of 96.15% of Sud-Chemie on 21 April this year.
For the nine-month period ending 30 September this year, Clariant’s net income surged by 67.4% year on year to Swfr241m, while sales edged 1% higher to Swfr5.45bn.
“Clariant expects a similar trading environment to the third quarter until year-end 2011, characterised by further softening demand, volatile currencies and stable raw material costs,” the company said.
For the full-year 2011, Clariant expects sales between Swfr7.0bn and Swfr7.2bn and an EBITDA margin of 12.8% to 13.2%, it added.
($1 = €1.41, $1 = Swfr1.16)
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