Clariant Textile, Leather & Paper Chemicals sales decline
08 Nov '07
3 min read
The encouraging decrease of SG&A expenses to 20.9 % of total sales from 21.5% in the previous year helped mitigate the impact of these unfavorable developments on operating income before exceptionals that declined to CHF 417 million from CHF 458 million (margin declined to 6.5% from 7.5%). The net income from continuing operations rose to CHF 129 million from CHF 108 million in the first 9 months of 2006.
Continuous demand for all division but slowdown in third quarter There was good demand for Clariant products with a retreating momentum in the third quarter and a differentiated development across businesses.
Some parts of the business – e.g. Coatings and Crop Protection – showed favorable volume increases whereas others – e.g. the Leather business – were challenged by declining demand. Also, the regional sales split showed a mixed picture. Europe remained stable, whereas Asia overall showed good growth with some slowdown the third quarter, in particular in China and India. Sales in the USA were more resilient.
Price increase initiatives across all divisions have started bearing fruit. In particular the divisions Pigments & Additives as well as Textile, Leather and Paper Chemicals managed to resist further price pressure. These efforts were accompanied by a negative impact on volume as a consequence of a strong focus on qualitative growth.
Nevertheless, the increasing momentum in pricing – in particular in the third quarter – could not offset rising raw material and energy costs. Only the Masterbatches Division was able to offset rising raw material and energy costs.
marketing@alchempro.com
