27 Jul 2011

Solid performance in a difficult environment – full-year guidance confirmed

• Q2 sales up 14% in local currencies on solid business fundamentals and price increases, but down 1% in CHF as Swiss franc continued to appreciate. Süd-Chemie results consolidated for May and June 2011.
• Q2 EBITDA before exceptional items at CHF 241 million, down from CHF 264 million a year ago, negative currency impact of CHF 69 million.
• Q2 EBITDA margin before exceptional items reached 12.9% compared to 13.9% a year ago; Q2 EBITDA margin at constant currencies 14.3%.
• Q2 cash flow from operations of minus CHF 101 million as inventories rose due to relocation of production assets and the usual seasonality.
• Integration of Süd-Chemie progressing as planned
• Outlook: Clariant expects a more difficult but nevertheless solid business environment in H2 2011, characterized by softening demand. Based on this scenario, no further deterioration in currency markets assumed, and including Süd-Chemie consolidated for eight months, Clariant confirms its guidance for the full-year 2011 with sales between CHF 7.8 - 8.0 billion and an EBITDA margin of 13.5% - 14.5%.

CEO Hariolf Kottmann commented: “In the first half of 2011, business fundamentals were robust although global economic growth dampened compared to 2010. This is reflected in an improved underlying operating performance year-on-year. The results, however, have been adversely impacted by the massive appreciation of the Swiss franc. The recently acquired Süd-Chemie has met our expectations in the first two months of consolidation and the integration into Clariant is progressing as planned. These developments give us the confidence to confirm our targets for the full-year 2011.”