Clariant posted a rise in sales for the first nine months of the year, with organic growth of 5 percent in local currency terms and 8 percent in Swiss franc terms compared with the same period a year earlier.
Sales on a continuing basis reached CHF 6.090 billion during the period from CHF 5.770 billion a year earlier.
Prices remained stable over the year-to-date with positive momentum in the Third Quarter. Gross profit rose to CHF 1.901 billion from CHF 1.779 billion year-on-year.
Gross margins increased to 31.2 percent from 30.8 percent a year earlier, despite the continued rise in raw material and energy costs during the period.
EBIT before exceptionals increased by CHF 30 million to CHF 458 million from CHF 428 million in the same period of 2005. The EBIT margin rose to 7.5 percent from 7.4 percent, despite continued high sales and distribution costs.
Furthermore, a reassessment of growth expectations of the Leather Business has led the company to record a goodwill impairment charge of CHF 100 million, correcting an overvaluation of the business.
The company emphasized that Leather is performing satisfactorily and continued its positive trend in the Third Quarter.
As a consequence of the impairment charge in the Leather business and further restructuring costs, net income from continuing operations declined to CHF 108 million from CHF 246 million.
An additional factor was the currency impact, which amounted to a negative CHF 5 million from positive CHF 44 million a year earlier.
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