GlobeNewswire

Clariant AG: Clariant grows sales and operating cash flow in the first half year 2019

Share

Clariant grows sales and operating cash flow in the first half year 2019


  • Entire Masterbatches and Pigments to be disposed, reclassified to discontinued operations
  • Sales from continuing operations grew by 4 % in local currency to CHF 2.229 billion
  • Continuing operations EBITDA before exceptional items softened by 2 % in Swiss francs to CHF 355 million with a 15.9 % EBITDA margin
  • One-off CHF 231 million provision for an ongoing competition law investigation by the European Commission
  • Post-provision continuing operations EBITDA was CHF 102 million, net result for the total Group at minus CHF 101 million
  • Operating cash flow rose by 11 % to CHF 113 million
  • Outlook 2021: Focused portfolio to achieve above-market growth, higher profitability and stronger cash generation

 

“The first half year 2019 was admittedly challenging - particularly the second quarter, which was additionally impacted by temporary negative influences and one-off occurrences. Our continuing businesses showed resilience in this difficult environment, which comforts us in our strategic decision to divest Masterbatches and Pigments,” said Hariolf Kottmann, Executive Chairman of Clariant. “Despite the uncertainties of the current economic environment, the growth profile of our continuing portfolio remains unchanged. We will continue to intensify our focus on customer experience and fast reliable customer fulfillment, enabling Clariant to realize above-market growth, higher profitability and stronger cash generation.”


Key Financial Data

Continuing operations Second Quarter First Half Year
in CHF million 2019 2018 % CHF % LC 2019 2018 % CHF % LC
Sales 1 065 1 075 -1 3 2 229 2 224 0 4
EBITDA before exceptional items 162 172 -6   355 362 -2  
- margin 15.2 % 16.0 %     15.9 % 16.3 %    
EBITDA after exceptional items -82 (1) 160 n.m.   102 (1) 341 -70  
- margin -- 14.9 %     4.6 % 15.3 %    
EBIT         -47 (1) 210    
Net result from continuing operations         -133 (1) 128    
Net result (2)         -101 (1) 211    
Operating cash flow (2)         113 (1) 102    
Number of employees         17 790 17 901 (3)    
Discontinued operations                
Sales 558 592 -6 -3 1 109 1 165 -5 -2
Net result from discontinued operations         32 83    
  1. including CHF 231 million provision for European Commission investigation
  2. total Group including discontinued operations
  3. as of 31 December 2018 (including discontinued operations)


First Half Year 2019 – Higher sales and operating cash flow improvement

Muttenz, July 25, 2019 - Clariant, a focused and innovative specialty chemical company, today announced first half year 2019 continuing operations sales of CHF 2.229 billion compared to CHF 2.224 billion in the first half year 2018. This corresponds to an organic growth of 4 % in local currency. Both higher volumes and pricing contributed to this expansion.

For the first half year, almost all regions contributed to the continuing operations sales growth in local currency. Sales in Latin America grew the strongest by 10 %, followed by the Middle East & Africa at 8 %. In Asia and Europe, the sales development was a good 5 % and 4 %, respectively. China, however, was down by 9 % while North America reported a slight contraction of 3 %.

The improved sales performance in the first half year 2019 resulted from growth in the Business Areas Catalysis and Natural Resources, which both reported strong expansion. Natural Resources newly includes the Business Unit Additives, in addition to Oil & Mining Services and Functional Minerals. Sales in Catalysis rose by a robust 8 % in local currency primarily supported by Syngas. Natural Resources sales rose by 6 % in local currency with a very notable expansion in Oil & Mining Services and some progression in Functional Minerals. Additives sales declined due to the softer consumer electronics and automotive markets.

Care Chemicals sales remained unchanged in local currency against a strong comparison base despite temporary raw material supply issues, mainly in the second quarter of 2019. Sales in discontinued operations (Masterbatches and Pigments) declined by 2 % in local currency, negatively impacted by the weakened economic environment.

Continuing operations EBITDA after exceptional items was negatively impacted by the one-off provision of CHF 231 million as a result of further developments in an ongoing competition law investigation by the European Commission into the ethylene purchasing market. Therefore, EBITDA decreased significantly to CHF 102 million compared to CHF 341 million in the previous year.

In terms of the operational performance and excluding the effect of this provision, the continuing operations EBITDA after exceptional items only slightly decreased by 2 % in Swiss francs to CHF 333 million. The profitability in Natural Resources improved due to the stronger top-line growth in tandem with the more optimized cost base in Oil & Mining Services however, temporary negative influences in Care Chemicals and Catalysis in the second quarter resulted in this slightly negative growth. The corresponding continuing operations EBITDA margin after exceptional items based upon the operational performance was 14.9 %.

The net result for the total Group including discontinued operations was minus CHF 101 million versus CHF 211 million in the first half year 2018. The development was negatively impacted by one-time project costs related to the carve-out of the discontinued operations as well as the one-off provision of CHF 231 million.

Operating cash flow for the total Group rose by 11 % to CHF 113 million from CHF 102 million in the previous year, driven by lower taxes and favorable developments in inventories.

Net debt for the total Group increased to CHF 1.801 billion versus CHF 1.374 billion as of the end of 2018 following the normal seasonal cash flow pattern. In addition, the first time implementation of IFRS 16 in 2019 increased net debt by CHF 218 million.

Second Quarter 2019 – Sales progression in local currency

In the second quarter of 2019, sales from continuing operations rose by 3 % in local currency to CHF 1.065 billion. This represents a decrease of 1 % in Swiss francs year-on-year due to unfavorable currency fluctuations. The sales growth in local currency was driven by Catalysis and Natural Resources, which now includes Additives in addition to Oil & Mining Services and Functional Minerals.

Most regions contributed to the continuing operations sales growth in local currency. In the Middle East & Africa, sales in local currency grew by a robust 16 %, in Latin America by 13 % and in Asia by 8 % with stabilization in China. Sales in Europe had a slight negative growth of 1 %, while North America was down 6 %.

Catalysis sales growth accelerated to 12 % in local currency. Natural Resources sales climbed by 5 % in local currency with positive contributions from both Oil & Mining Services as well as Functional Minerals while sales in Additives were weaker. Sales in Care Chemicals fell by 3 % in local currency, against a strong comparison base, but mainly due to a strong decline in North America as a result of a Force Majeure of a supplier. Discontinued operations (Masterbatches and Pigments) sales declined by 3 % in local currency due to the continued challenging economic environment.

Because of the one-off CHF 231 million provision, continuing operations EBITDA after exceptional items decreased significantly to minus CHF 82 million from CHF 160 million in the previous year.

In terms of the operational performance and excluding the effect of this provision, the continuing operations EBITDA after exceptional items decreased by 7 % in Swiss francs to CHF 149 million in the second quarter of 2019. The profitability advanced significantly in Natural Resources as a result of the focus within the Oil Services activities on value added projects. This, however, could not offset the temporarily softer margins in Care Chemicals and Catalysis due to some one-off capacity outages. Consequently, excluding the effect of the provision, the continuing operations EBITDA margin after exceptional items on the Group level decreased to 14.0 % from 14.9 % in the previous year.

Clariant to focus on its core high value specialty businesses

As part of the portfolio upgrade announced in September 2018, Clariant will continue with the divestment of the Pigments business and has decided to also divest the entire Masterbatches business including both, standard and high value Masterbatches. These divestments are expected to be concluded unchanged by end 2020.

The proceeds from the divestments will be used to invest in innovations and technological applications within the core Business Areas, to strengthen Clariant’s balance sheet and to return capital to shareholders.

With the new reporting and portfolio structure, Clariant will benefit from a stronger focus on differentiated, customer-specific products and offerings with attractive growth prospects and above-average value potential. With this more streamlined portfolio structure Clariant will be better able to intensify the focus on customer experience and fast, reliable customer fulfillment, as well as on the development of innovative and sustainable products and applications. This will generate a competitive advantage for customers and hence enable Clariant to realize above-market growth, higher profitability and stronger cash generation. 


Clariant’s focused, high value specialty portfolio and reporting structure

 

Outlook 2021 – Focused portfolio to achieve above-market growth, higher profitability and stronger cash generation

Clariant is a focused and innovative specialty chemical company. We aim to provide more than just customer-oriented products. We strive to provide the best customer experience and fast, reliable customer fulfillment in the industry by setting the right priorities.

Our aim is to make our customers more successful. We therefore constantly focus on timely and rewarding innovations, products that are difficult to imitate, sustainability, agility as well as ethical practices. We will only be satisfied with the highest level of excellence in every function within the Group. Our success will be realized through the execution of our strategy.

Despite the current challenging environment, Clariant expects its continuing businesses to achieve above-market growth, higher profitability and stronger cash generation based on our focused, high value specialty portfolio.



CORPORATE MEDIA RELATIONS INVESTOR RELATIONS
Jochen Dubiel

Phone +41 61 469 63 63
jochen.dubiel@clariant.com
Anja Pomrehn

Phone +41 61 469 67 45
anja.pomrehn@clariant.com
Claudia Kamensky

Phone +41 61 469 63 63
claudia.kamensky@clariant.com
Maria Ivek

Phone +41 61 469 63 73
maria.ivek@clariant.com
Thijs Bouwens

Phone +41 61 469 63 63
thijs.bouwens@clariant.com
 
Follow us on Twitter, Facebook, Google Plus, LinkedIn.  
 

 

This media release contains certain statements that are neither reported financial results nor other historical information. This document also includes forward-looking statements. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond Clariant’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors such as: the timing and strength of new product offerings; pricing strategies of competitors; the Company’s ability to continue to receive adequate products from its vendors on acceptable terms, or at all, and to continue to obtain sufficient financing to meet its liquidity needs; and changes in the political, social and regulatory framework in which the Company operates or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. Clariant does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials.

 


 

www.clariant.com

 


 

Clariant is a focused and innovative specialty chemical company, based in Muttenz near Basel/Switzerland. On 31 December 2018 the company employed a total workforce of 17 901. In the financial year 2018, Clariant recorded sales of CHF 4.404 billion for its continuing businesses. The company reports in three business areas: Care Chemicals, Catalysis and Natural Resources. Clariant’s corporate strategy is based on five pillars: focus on innovation and R&D, add value with sustainability, reposition portfolio, intensify growth, and increase profitability.



H1 2019 Financial Review EN

H1 2019 Media Release EN

About GlobeNewswire

GlobeNewswire
GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://globenewswire.com

GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire

Subscribe to all the latest releases from GlobeNewswire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire

NAXS Delårsrapport januari – september 201918.10.2019 17:45:00 CESTPressemelding

Nio månader 2019 Resultat efter skatt uppgick till 26,4 (22,2) MSEK. Resultatet per aktie uppgick till 2,29 (1,70) SEK. Substansvärdet uppgick till 717 MSEK (SEK 64,16 per aktie) per den 30 september 2019, jämfört med 736 MSEK (SEK 61,81 per aktie) per den 31 december 2018. De omfattande aktieåterköpen under delårsperioden samt betalning av utdelningen för 2018 var de två viktigaste orsakerna till det minskade substansvärdet. Nettokassan uppgick till 194 MSEK (17,40 SEK per aktie) per den 30 september 2019, jämfört med 261 MSEK (21,94 SEK per aktie) per den 31 december 2018. Årsstämman 2019 beslutade att lämna en utdelning om 2,78 SEK per aktie. Tredje kvartalet 2019 Resultat efter skatt uppgick till 11,7 (10,6) MSEK. Resultatet efter skatt per aktie uppgick till 1,05 (0,86) SEK. VD-kommentar NAXS hade en fortsatt stabil utveckling under det tredje kvartalet med en tillväxt i substanse/aktie om 3% under kvartalet och 7,4% över en 12-månaders period, inklusive lämnad utdelning. NAXS har

Interim Report January-September 201918.10.2019 17:45:00 CESTPress release

Nine months 2019 Net profit/loss for the period amounted to MSEK 26.4 (22.2). Earnings per share amounted to SEK 2.29 (1.70). Net asset value amounted to MSEK 717 (SEK 64.16 per share) at September 30, 2019, compared to MSEK 736 (SEK 61.81 per share) at year-end 2018. The fact that the total net asset value decreased, while the net asset value per share increased is due to the shares repurchases made during the period. Net cash amounted to MSEK 194 (SEK 17.40 per share) at September 30, 2019, compared to MSEK 261 (SEK 21.94 per share) at year-end 2018. The 2019 Annual General Meeting resolved that a dividend of 2.78 SEK per share to the shareholders for FY 2018. Third quarter 2019 Net profit/loss for the quarter amounted to MSEK 11.7 (10.6). Earnings per share amounted to SEK 1.05 (0.86). Comments by the CEO NAXS delivered a steady performance during the third quarter of 2019, with the NAV/share growing by 3% during the quarter and by 7.4% over 12 months, including the dividend paid. N

DNO ASA: Mandatory Notification of Trade18.10.2019 16:47:00 CESTPress release

Oslo, 18 October 2019 - DNO ASA, the Norwegian oil and gas operator, has today purchased 1,200,000 own shares at an average price of NOK 12.4482 per share. Following this transaction, DNO holds 78,800,000 own shares. -- For further information, please contact: Media: media@dno.no Investors: investor.relations@dno.no -- DNO ASA is a Norwegian oil and gas operator focused on the Middle East and the North Sea. Founded in 1971 and listed on the Oslo Stock Exchange, the Company holds stakes in onshore and offshore licenses at various stages of exploration, development and production in the Kurdistan region of Iraq, Norway, the United Kingdom, Netherlands, Ireland and Yemen. This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

PCI Biotech: Mandatory notification regarding trade of shares18.10.2019 14:59:00 CESTPress release

Stocken Invest AS, a wholly owned company by Lars Viksmoen, has on 18 October 2019 transferred 12,966 shares in PCI Biotech Holding ASA (“PCI Biotech”) to Lars Viksmoen, board member of PCI Biotech, at an average price of NOK 26.80 per share. After the transaction, Lars Viksmoen holds 12,966 shares in PCI Biotech and Stocken Invest AS holds 0 shares in PCI Biotech. This information is subject to the disclosure requirements pursuant to section 4-2 of the Norwegian Securities Trading Act.

Announcement of the Management Board of joint stock company “Olainfarm”18.10.2019 14:23:00 CESTPress release

The joint stock company “Olainfarm” has received draft decisions prepared by the initiators of the November 1, 2019 Extraordinary General Meeting of Shareholders – limited liability company “OLMAFARM” and Andrejs Saveljevs who is authorized representative of Nika Saveljeva, which include, inter alia, a list of candidates for the Council and Auditing committee of joints stock company “Olainfarm”. The requirements laid down in the laws and regulations in force in Republic of Latvia and in related documents determines the specific requirements to be complied with by capital companies listed in regulated market regarding their management and disclosure of information. Legislation of the Republic of Latvia (including the Financial Instrument Market Law) sets requirements for capital companies, and the European Union and the OECD (Organization for Economic Co-operation and Development) set out recommendations for the corporate governance of the capital companies. Nasdaq Riga, AS has develope

Nordic American Tankers Limited (NYSE:NAT) Announces the date for its 2019 Annual General Meeting of Shareholders (AGM)18.10.2019 13:32:00 CESTPress release

Hamilton, Bermuda, October 18, 2019. Nordic American Tankers Limited today announced that its Board of Directors has scheduled the 2019 AGM, to be held on November 20, 2019 at 10:00 a.m., local time, at the LOM Building,27 Reid Street, Hamilton HM 11 Bermuda. The Board has set a record date of October 8, 2019 for the determination of the NAT shareholders entitled to receive notice of and to vote at the AGM or any adjournment thereof. The Notice of the Meeting and Proxy Statement will be furnished to the Securities and Exchange Commission (SEC) on October 18, 2019. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals,