Clariant increases growth and profitability

Clariant announced full year 2017 sales of EUR 5.531,1775 billion. This corresponds to 9 % growth in local currency driven by double-digit gains in Catalysis and Natural Resources. The strong organic growth amounted to 6 %, driven by higher volume contributions by all Business Areas.
For the full year, sales growth in local currency was strongest in Asia, the Middle East & Africa and Europe. Sales in Asia rose by 12 %, lifted by a remarkable sales development in China, Southeast Asia and Japan. Sales growth in the Middle East & Africa was 15 % and in Europe 7 %. Sales in North America also increased by 11 % mainly driven by acquisitions. Latin American sales were flat, however, showing signs of improvement in the second half of the year in an ongoing challenging macroeconomic environment.

Growth in all business areas

The improved sales performance for the full year resulted from growth in all business areas. Both Care Chemicals and Catalysis reported particularly strong expansion. Sales in Care Chemicals rose by 8 % in local currency supported by vigorous Consumer Care and Industrial Applications businesses. Catalysis sales improved by an excellent 13 % with positive contributions from all Business Lines.
Natural Resources sales accelerated by 14 %, mainly lifted by the Kel-Tech and X-Chem acquisitions in North America. Organic sales in Natural Resources grew by 3 %, driven by the solid growth in Functional Minerals and the beginning recovery of the Oil & Mining Services business. In Plastics & Coatings, sales rose by 5 % with sales expansion in all three Business Units and particular strength in China.

Net debt remained stable

EBITDA before exceptional items rose by 10 % in Swiss francs and reached EUR 844,8121 million. The absolute profitability improvement was attributable to the positive developments in all Business Areas. The corresponding EBITDA margin before exceptional items advanced to 15.3 %.
Net income climbed by 15 % in Swiss francs to EUR 261,9438 million. This increase was supported by the improvement in absolute EBITDA before exceptional items as well as lower finance costs which could offset the one-off costs and higher tax expenses.
Operating cash flow declined to EUR 371,2316 million due to temporarily higher cash out for one-off costs and higher net working capital as a result of brisk demand late in the fourth quarter of 2017 and the anticipated strong demand in the first quarter of 2018, especially in Catalysis. Net debt remained stable at CHF 1.334,8725 billion.

Outlook

Clariant expects the good economic environment in mature markets, which represent a high comparable base, to continue. Emerging markets are expected to be supportive with Latin America showing signs of a recovery.

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