Clariant Textile, Leather & Paper Chemicals sales decline
08 Nov '07
3 min read
Clariant announced a rise in 9-month sales with growth of 4% in local currencies and 6% in Swiss Francs, compared to the first tthree quarters of 2006. In absolute terms, sales rose to CHF 6.447 billion from CHF 6.090 billion a year earlier.
- Sales up 4% in local currency and 6% in Swiss Francs - Operating cash flow almost doubled compared to the first nine months 2006 and reaches 320 million Swiss Francs - Net income from continuing operations increased to 129 million Swiss Francs - Profitability impacted by rising raw material and energy costs as well as unfavorable currency exchange rates - Price increases could not offset unfavorable raw material cost development - expected full year 2007 EBIT around CHF 530 million - Strategy implementation gathering speed: • Site network optimization on track - 120 million Swiss Francs restructuring costs booked in the third quarter • Pigments & Additives Division adopts cost leadership strategy • Company adjusts operational structure in order to accelerate execution - as a consequence approximately 100 headcounts at Headquarters to be cut - Pigments & Additives, Functional Chemicals and Textile, Leather & Paper Chemicals divisions are reviewing strategic options for selective units
A raw material cost increase of 4%, higher energy costs and unfavorable currency exchange effects resulted in enduring pressure on the gross profit that could not be compensated by 1% price increase.The gross margin decreased to 29.6% from 31.2% in the previous year. In particular, the Functional Chemicals Division was impacted by these adverse effects.
marketing@alchempro.com
