Clariant International AG
Clariant AG part 2
Solid sales growth in a difficult market environment – Part 2 of 2
Ad-hoc-announcement processed and transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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Solid sales growth in a difficult market environment – Part 2 of 2
In the first quarter of 2003 Clariant reported sales growth of CHF 4% in local
currencies. All divisions except for LSE contributed to this growth with higher
volumes and an optimized product mix, while prices were kept stable despite the
tough competitive environment. Sales in Swiss francs fell by 8% to CHF 2 106 mn
owing to the strong appreciation of the Swiss franc against most of the major
currencies.
Gross profit increased slightly to CHF 712 mn (+1%). The decline in operating
profit (EBIT) to CHF 113 mn is due in large measure to the provision of about
CHF 38 mn made by the FUN division owing to the further delay in starting up
production at a new plant in the U.S. Furthermore, the weak operating result at
LSE had an adverse impact on Group EBIT.
High tax rates and mostly non-cash currency losses were negative factors
impacting the financial result in the first quarter. Net income came to CHF 2
mn, though it would have been CHF 40 mn without the special effect mentioned
above.
Clariant CEO Roland Lösser said: “Thanks to our solid marketing efforts we were
able to achieve a lasting increase in sales to the local markets despite tough
market conditions. We grew faster than the market in many of our businesses and
were able to keep our prices stable. Unfortunately the operating performance of
our Group was negatively impacted by special effects.”
Debt increased following seasonal patterns, coming to CHF 3 665 mn as per March
31 compared with CHF 3 476 mn at the end of 2002. By contrast, equity increased
slightly to CHF 947 mn compared with CHF 914 mn at the end of last year.
Despite the difficult environment, Clariant is maintaining expenditures for
research and development – the engine driving the company’s innovativeness and
sustainable growth – at the high level of 3.7% of sales.
With the economic situation remaining unstable, it is not possible at the
present time to make reliable statements for fiscal 2003. For the second
quarter, Clariant expects its operating performance to be on a par with that in
the first quarter, if the special effect is factored out.
The company reiterates its goal to reduce net debt to below CHF 2.5 billion at
year-end assuming successful completion of disposal projects.
You can find detailed information on the quarterly result and the divisions,
including tables, on the Internet at http://www.clariant.com/investors.
Calendar of events:
August 5, 2003: Results 2nd quarter
Details of Clariant’s strategy will be communicated to the
market by the new CEO, Roland Lösser, in a conference
November 4, 2003: 9-month results for 2003
end of ad-hoc-announcement (c)DGAP 07.05.2003
Issuer’s information/explanatory remarks concerning this ad-hoc-announcement:
Your contacts at Clariant
Media Relations
Christoph Hafner Tel. +41 61 469 67 46
Rainer Weihofen Tel. +41 61 469 67 42
Fax +41 61 469 69 99
Investor Relations Tel. +41 61 469 67 48
Fax +41 61 469 67 67
Iris Welten Tel. +41 61 469 67 47
Holger Schimanke Tel. +41 61 469 67 45
Daniel Leuthardt Tel. +41 61 469 67 49
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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
070731 Mai 03
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