Swiss Clariant to boost earnings margins to above 17% in 2015

22 June 2012 08:56  [Source: ICIS news]

SINGAPORE (ICIS)--Swiss specialty chemicals maker Clariant said on Friday it plans to boost its earnings margin to above 17% in 2015, and is aiming to generate the bulk of its sales from “non-cyclical” businesses in the years ahead.

The company’s goal is to increase its earnings before interest, tax, depreciation, amortisation (EBITDA) margin from 13.2% last year to above 17% in 2015, the company said in a statement.

“The goal is, amongst others…to achieve a return on invested capital that is above peer group average,” it said.

“Clariant will in future generate more than 70% of its sales with core non-cyclical business units,” the firm said.

The company aims to boost its “profitable growth” by increasing its markets shares in emerging markets such as China, India and Brazil, it said.

Clariant is also actively evaluating its product portfolio, such as in its textile chemicals, paper specialties, emulsions as well as its detergents and intermediates business units.

"We will implement these portfolio management measures with the same speed and determination as that of our activities in the restructuring phase,” said CEO Hariolf Kottmann.

“They are an important pre-requisite for reaching our targets by 2015. At that point, a newly aligned Clariant will be even more profitable and will generate more than 70% of its sales from non-cyclical business units,” Kottmann said.

“The acquisition of Sud-Chemie was an important first step for Clariant,” he added.

With the integration of former Sud-Chemie businesses, Clariant expects an additional EBITDA improvement of Swiss francs (Swfr) 90m-115m ($94m-120m) until the end of 2013, the company said.

“In addition, the transaction was fully refinanced within less than twelve months,” it added.

($1 = Swfr0.96)


By: Nurluqman Suratman



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