Clariant International AG
Clariant AG part 1
Clariant AG: Part 1 of 3
Ad-hoc-announcement processed and transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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Clariant AG: Part 1 of 3
Clariant Unveils Wide-Reaching Corporate Transformation Program
Muttenz, Switzerland, August 5, 2003 – Roland Lösser, Clariant’s new chief
executive, announced today a wide-reaching corporate transformation program
that will significantly reduce debt, cut costs, and re-establish the group as
one of the leading specialty chemicals companies.
The program, which is the result of an extensive internal review, includes the
sale of the Cellulose Ethers and Electronic Materials businesses and the
closure of four agrochemicals plants. Overall, the program targets more than
CHF 1.5 billion in proceeds from asset sales and aims to increase the pre-tax
return on invested capital (ROIC 1) within the next three to four years to at
least 12%, up from the current level of around 7%.
Stable Financial Situation
Clariant today also reported operating results for the first half year. Cost
reduction measures launched at the beginning of the quarter resulted in savings
of approximately CHF 60 million including management bonus cuts. These measures
will have further positive effect over the next 18 months. Amid a challenging
market environment, sales grew 2% in local currencies, but declined 7% in Swiss
franc terms to CHF 4.3 billion. After an exceptional charge of CHF 142 million
relating to a previously announced plant closure, the company reported a net
loss for the second half of CHF 49 million, compared with a net income of CHF
145 million in the year earlier period.
“We are not satisfied with these results and they underline our determination
to refocus the company and significantly improve our performance over both the
short and long term,” Mr. Lösser said.
The Clariant chief executive confirmed that the company’s financial situation
is stable. “We have successfully completed negotiations with lending banks on
amended credit lines and we have sufficient liquidity,” he said. Furthermore,
measures are underway to reduce net debt to below CHF 2.5 billion within 9
months, down from CHF 3.7 billion at present. Mr. Lösser explicitly ruled out
any new issuance of equity over the short and medium term. “We will strengthen
our balance sheet primarily through asset sales,” he said.
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1 ROIC. A measure of how effectively a company uses the money (borrowed or
owned) invested in its operations. Calculated by: Operating income before
impairments and amortization of goodwill divided by (net working capital plus
fixed assets plus cash).
end of ad-hoc-announcement (c)DGAP 05.08.2003
Issuer’s information/explanatory remarks concerning this ad-hoc-announcement:
Key financial group figures 1st half-year 2003 (in m CHF)
1st half 1st half 2003 1st half 1st half Change in %
2003 2002 2002 (2003 reported
reported * excl reported continuing compared with
restructuring operations 2002 restated)
and (restated)3
impairment
CHF LC
Sales 4273 4273 4839 4584 -7 +2
Gross profit 1412 1412 1651 1564 -10 -3
EBITDA 513 549 633 592 -13 -8
EBIT 213 355 374 343 -38 -40
Net income -49 93 145 114 – –
As per June 2003 March 2003
Net debt 3 686 3 665
Equity 1 061 947
3 The numbers for 2002 were restated to account for the disposals of business
activities in 2002.
Disposals in 2002: Emulsion Business of Division Textile, Leather & Paper
Hydrosulfite North America of Division Textile, Leather &
Paper
Emulsion Business Portugal of Division Textile, Leather &
Paper
All activities were sold effective as per the end of 2002.
4 EBITDA – operating income before interest, taxes, depreciation of tangible
fixed assets and amortization of intangible assets – is a standard value used
to analyze the ability of a company to generate cash from its operations.
Interest and taxes are considered to be non-operating expenses and therefore
excluded from this calculation.
BIOGRAPHIES OF CLARIANT TOP MANAGEMENT
Roland Lösser
Chief Executive Officer
Roland Lösser was named CEO of Clariant in March 2003. He served as CFO of
Clariant from its initial public offering in 1995 until 2000. Mr. Lösser
thereafter remained closely connected with Clariant as a member of the Board of
Directors and has been a Vice Chairman of the Board since 2002.
Mr. Lösser was born in Germany in 1942 and earned a diploma in business
administration. He is married and has one daughter.
François Note
Chief Financial Officer
François Note has been Chief Financial Officer of Clariant since 2001. For the
previous two years, Mr. Note served as Head of Corporate Human Resources and
was responsible for all HR activities in the Clariant Group world-wide.
Born in France in 1959, Mr. Note holds a business administration degree from
ESSEC and a master’s degree in applied economics from the Paris-Dauphine
University. He is married and has two children.
Peter Brandenberg
Head of Corporate Human Resources
Chief Communications Officer
Head of Regions
Peter Brandenberg was appointed to the position of Head of Corporate Human
Resources and Head of Regions in April 2003. He has served in several positions
with Clariant since 1995, including Head of Division Textile, Leather & Paper
Chemicals and CEO of Clariant in Germany.
Born in Switzerland in 1947, Mr. Brandenberg studied business administration in
Switzerland and the USA. He is married and has two children.
Nico Gontha
Head of Textile, Leather & Paper Chemicals Division
Nico Gontha was appointed Head of Clariant’s TLP Division effective April 2003.
From 2001 to 2003, he was Head of the Masterbatches Division. From 1996 to
2001, while based in Singapore, he served as Regional President of Clariant’s
ASEAN/Pacific Rim area and Regional Head India/ASEAN/ Pacific Rim for the
Pigments & Additives Division.
Born in 1948 in Indonesia, Mr. Gontha earned a degree in business
administration and economics from the University of St Gallen (Switzerland). He
is married and has one child.
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WKN: 895929; ISIN: CH0012142631; Index: SMI
Listed: Amtlicher Markt in Frankfurt (General Standard); Freiverkehr in Berlin-
Bremen, Düsseldorf, München und Stuttgart; Schweizer Börse (Hauptsegment); SEAQ-
Handel in London
050738 Aug 03
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