Clariant textile & leather posts strong recovery in H1
02 Aug '06
3 min read
Clariant posted a rise in sales in the first half of 2006, with organic growth of 4 percent in local currency terms and 8 percent in Swiss franc terms compared with the first half of 2005.
A combination of higher costs for raw materials, energy and logistics as well as unchanged average selling prices weighed on results. Net income from continuing operations declined to CHF 109 million from CHF 144 million in the corresponding period last year mainly due to higher restructuring charges. Operating cash flow rose to CHF 53 million compared to a negative CHF 43 million in the first half of 2005.
Raw materials rose 1 percent year-on-year, while energy increased 17 percent over the same period. Nevertheless, the gross margin was maintained around last year's level, at 30.8 percent, partially benefiting from the Clariant Performance Improvement Program delivering cost savings across the Group of approximately CHF 130 million.
The EBIT (earnings before interest and tax) margin before exceptional items declined to 6.8 percent, from 7.2 percent. This margin decrease was driven mainly by higher costs in two areas: selling, general and administrative expenses, which were incurred because of continued investment in improving the supply chain, and higher volumes.
Good Growth across the Group: Solid demand drove good growth across most businesses. Masterbatches delivered excellent results, particularly in the United States. Pigments & Additives grew strongly in volumes and showed very good performance with increased demand across all business areas, especially plastics.
marketing@alchempro.com
