29 July 2010
Speciality chemicals producer Clariant has reported sales of CHF 1.9 billion (£1.1 billion) in second quarter results, up 18 percent from the same period last year.
Operating income before exceptional items soared to CHF 211 million (£128 million), compared with CHF 69 million (£42 million) last year and CHF 183 million (£111 million) in the first quarter. The company said this increase was “mainly driven by higher sales volumes”.
Net income stood at CHF 25 million (£15 million), up from a loss of CHF 61 million (£37 million) in the second quarter last year.
In a financial report released today, the firm said: “Against the backdrop of the depreciation of the euro against the USD and an increased competitiveness, demand in Europe developed better than expected compared to the low basis year on year, which resulted in a strong 22 percent sales growth for Clariant.
“Demand in the regions Asia, Latin and North America increased as well, favourably affecting the company’s sales.”
For the year ahead, Clariant says that although demand will remain solid, it predicts the next six months to be weaker as the global economy is expected to soften. Raw material costs are also expected to rise further.
CEO Hariolf Kottmann said: “In the first half of 2010, the economic tailwind leveraged the results of our restructuring programme. Consequently we recorded a good operating income before exceptionals and a strong cash flow. We maintained our good cost position and further reduced our debt.
“For the second half of the year, we predict a softening in demand compared to the first half as a result of a weaker economy and the traditional seasonal effects of our business.
“Until the end of the year, we will continue with our focus on restructuring with the expected impact of restructuring costs on our net income. All in all we expect a satisfactory year for 2010 for our company.”