Clariant Textile biz sees moderate growth in H1 2007
07 Sep '07
2 min read
Clariant announced a rise in sales in the First Half of 2007, with growth of 5% in local currency terms and 6% in Swiss Franc terms, compared with the First Half of 2006. Sales rose to CHF 4.336 billion from CHF 4.081 billion a year earlier, with continued strong demand across all divisions.
The gross margin decreased to 29.9% from 31.5 % due to an increase in energy costs and a 4% rise in raw material prices.
While Clariant managed to increase prices by 1%, the company was adversely affected by a sharp increase in raw materials costs, which affected the Pigment & Additives and the Textile, Leather & Paper Chemicals divisions in particular. Currency effects also negatively impacted Clariant's gross profit.
In the Second Quarter of the year, the Textile, Leather & Paper Chemicals division increased sales by a further 1% in organic terms and 5% in Swiss franc terms. This growth was achieved in an environment of still-solid but slightly lower demand and price pressures.
Growth within the business segments varied, however: while sales in the Paper Business continued to be robust, and the Textile Business also delivered good rates of growth, there were clear signs that, in the Leather Business, the cycle was starting to turn down. In regional terms, growth was underpinned mainly by business in Asia, Latin America, and the emerging markets.
Despite higher raw material costs, partially caused by scarcity of raw materials, and unfavorable currency effects, profitability improved slightly due to a lower cost base and the aforementioned volume growth.
marketing@alchempro.com
