Global leader in the field of specialty chemicals, Clariant achieved satisfactory first half results, with momentum picking up in the second quarter. Sales were up 3 percent in local currency terms in the second quarter compared to the same period in 2004.
Net income rose 30 percent to CHF 146 million compared to CHF 112 million on a like-for-like basis compared to the first half of 2004. Additional price increases were achieved across all divisions and in most businesses, although the positive impact was more than offset by the negative effect of higher raw material costs.
“In the context of the prevailing market conditions, this was a satisfactory first half,” said Chief Executive Roland Loesser. “Particularly encouraging was the stronger second quarter, which expect to be able to sustain. The main area of uncertainty, of course, is the current volatility of raw material prices.”
Gross profit declined to CHF 1.252 billion, from CHF 1.342 billion a year earlier, affected by higher raw material costs. Operating income before exceptional items and amortization of goodwill on a like-for-like basis declined to CHF 282 million from CHF 358 million because of the aforementioned higher raw material prices and negative currency effects, which were partly offset by cost-cutting measures. Operating income fell to CHF 223 million, from CHF 292 million.
The majority of businesses that were able to raise prices above group average were in the Functional Chemicals, Textile, Leather & Paper Chemicals and Masterbatches divisions. Growth momentum was notable across all regions, with performance especially strong in Germany, Clariant's largest market.
marketing@alchempro.com
