Clariant Finance (Luxembourg) S.A. : Clariant Finance (Luxembourg) S.A. :
Annual Financial Report
Reshaped Clariant increases profitability in the fourth quarter
*Repositioning of portfolio well underway with an agreement to divest
three businesses already signed.
*Continuing operations with full-year sales growth of 8% to CHF 6.04
billion and an EBITDA* margin of 13.3% on solid development in the core
*Net result from continuing operations of CHF 211 million due to strong
*Dividend increase of 10% to CHF 0.33 per share proposed.
*For full-year 2013, Clariant expects a further progress in sales and
profitability compared to 2012 by focusing on growth and continuous cost
CEO Hariolf Kottmann: "Clariant achieved solid results in a demanding year,
with the majority of businesses performing well. In most regions the company
continued on a robust growth path. In Europe, the economic weakness affected
some of the more cyclical businesses. Concerning the repositioning of
Clariant, the company has made good progress. Five businesses have been
reclassified as discontinued operations and an agreement to divest three of
those businesses has already been signed. The focus in 2013 will now be on
growing the remaining seven core businesses. Combined with continuous cost
efficiency, the reshaped Clariant is well positioned to achieve its 2015
Key Financial Data
Continuing operations: Fourth Quarter Full Year
In CHF million 2012 2011 %CHF %LC 2012 2011 %CHF %LC
Sales 1 509 1 491 1 2 6 038 5 571 8 8
EBITDA before exceptional items 225 213 6 3 802 835 -4 -5
- margin 14.9% 14.3% 13.3% 15.0%
EBIT before exceptional items 152 149 2 -3 531 624 -15 -16
- margin 10.1% 10.0% 8.8% 11.2%
EBIT 100 22 355 309 396 432 -8 -11
Net result from continuing 87 11 211 220
Net income^1 99 10 238 251
Operating cash flow ^1,2 284 200 468 314
Number of employees ^1 21 202 22 149
Sales 427 427 1 744 1 799
Net result from discontinued 12 -1 27 31
^1 Total group, including discontinued operations
^2 Starting from 2012 interest paid and interest received are reported as part
of financing cash flow. Prior year information
has been reclassified accordingly.
Full-Year 2012 Performance
Muttenz, February 14, 2013 - Clariant, a world leader in specialty chemicals,
today announced full-year sales 2012 from continuing operations of CHF 6.038
billion compared to CHF 5.571 billion in the previous-year period. This
corresponds to an increase of 8% in local currencies and in Swiss francs. The
8% increase was driven by the acquisition of Süd-Chemie, while organic growth
was flat with 2% higher prices offsetting lower volumes.
Sales development in 2012 was heterogeneous across all regions and businesses.
From a regional perspective, all regions except Europe grew double-digit.
Europe declined 2% while growth dynamics in Asia/Pacific remained robust
during the year. The pronounced weakness in southern Europe has spread across
the continent in the second half-year. However, with roughly two thirds of
sales generated outside of Europe, the impact of the European crisis on
Clariant was offset by growth in the other regions. In the fourth quarter no
further deterioration of the business environment from third quarter levels
has been observed.
In an overall demanding market environment, there was strength in the
Catalysis & Energy and Oil & Mining Services Business Units (BU), both growing
double-digit in a year-on-year comparison. Industrial & Consumer Specialties
and Functional Materials held up well due to their limited exposure to the
economic cycle. While Masterbatches managed to resist the weakness in Europe,
the Pigments and Additives BUs were impacted by the severe downturn in some
end-markets - mainly in Coatings, Printing and Electronics - and primarily in
At 28.9%, the gross margin improved from 27.5% recorded in the previous year.
The improvement was the result of a positive volume/mix effect and a stringent
margin management which over-compensated higher costs for the underutilization
of production capacities. Year-on-year, prices increased by 2% while raw
material costs remained stable.
The EBITDA before exceptional items from continuing operations was 4% lower
year-on-year, contracting to CHF 802 million from CHF 835 million. EBITDA
margin before exceptionals stood at 13.3% compared to 15.0% for the continuing
operations in the previous-year period.
On the EBITDA line, exceptional items including restructuring and impairment
costs were lower at CHF 127 million versus CHF 192 million in full-year 2011
and were mostly related to the integration of Süd-Chemie. Net result from
continuing operations was 4% lower at CHF 211 million compared to CHF 220
million in the same period one year ago. Lower taxes could not fully offset
the impact from a lower operating income and somewhat higher financing costs.
Full-year operating cash flow was strong with CHF 468 million compared to CHF
314 million one year ago, following the normal seasonality with a build-up in
inventories in the first half of the year followed by a reduction in
inventories and therefore cash flow generation in the second half-year.
Net debt stood at CHF 1.789 billion and was therefore lower compared to the
CHF 1.934 billion recorded at the end of the third quarter 2012, but close to
the CHF 1.740 billion reported at year-end 2011. Consequently, the gearing,
reflecting net financial debt in relation to equity, improved to 59% from 64%
at the end of the third quarter 2012, and was only marginally higher compared
to the 58% recorded at year-end 2011.
Event Subsequent to FY 2012: Early Redemption of Convertible Bond
Clariant has decided on February 6, 2013, to early redeem the 3% Convertible
Bond 2009-2014 of CHF 300 million with conversion rights into Clariant
registered shares with a nominal value of CHF 3.70 based on the terms of the
bond. As far as the conversion rights are exercised, Clariant will reduce its
net debt and increase its equity.
Q4 2012 Performance
In the fourth quarter, Clariant reported 2% sales growth in local currencies
on the back of 3% higher volumes and 1% lower prices. In Swiss francs, sales
were 1% higher, at CHF 1.509 billion compared to CHF 1.491 billion a year ago.
Compared to the third quarter of 2012, both sales prices and raw material
costs decreased 1%. Sales growth in the fourth quarter was driven by strength
in Oil & Mining Services and Catalysis & Energy with growth of 15%
respectively 9%. While Functional Materials, Industrial & Consumer
Specialties, Masterbatches and Pigments developed stable year-on-year,
Additives was adversely impacted by the ongoing weakness in the electronics
industry. At the regional level, Latin America grew double-digit in local
currencies while North America and Asia/Pacific were slightly above
previous-year's level. EMEA was flat with good growth in the Middle East
compensating for the weakness in Europe.
The gross margin was higher year-on-year, at 29.3% compared to 27.0%^ in
the previous-year period. This was mainly due to stringent margin management
and lower idle facility costs year-on-year. The EBITDA margin before
exceptional items climbed to 14.9% from 14.3% in the fourth quarter of 2011 as
a result of almost stable or better margins in five of the seven Business
Operating cash flow picked-up significantly and amounted to CHF 284 million
compared to CHF 200 million in the fourth quarter 2011.
In 2012 Clariant announced it would be looking for strategic options for the
four BUs Textile Chemicals, Paper Specialties, Emulsions Detergents &
Intermediates and Leather Services. In a first phase, Clariant announced on 27
December 2012 an agreement to sell its Textile Chemicals, Paper Specialties
and Emulsions businesses to SK Capital, a US-based investment firm. Subject to
regulatory approvals, the transaction is expected to close by the end of
Q2/2013. In a second phase, strategic options are currently evaluated for
Leather Services and Detergents & Intermediates. Therefore all four BUs are
reported as "discontinued operations", starting with 2012 full-year results.
For information purposes, the Group's figures for full year and Q4, before
reclassifying in continuing and discontinued operations, would have been as
Driven by the acquisition of Süd-Chemie, full-year 2012 sales including
discontinued operations amounted to CHF 7.782 billion, a 6% increase from the
CHF 7.370 billion recorded in 2011. In local currencies sales were also 6%
higher. EBITDA before exceptional items fell 4% to CHF 934 million (margin
12.0%) from CHF 975 million (margin 13.2%) in full-year 2011. Fourth quarter
2012 sales including discontinued operations rose 2% in local currency and 1%
in Swiss francs to CHF 1.936 billion from 1.918 billion in the previous-year
period. The EBITDA before exceptionals was 9% higher at CHF 264 million
(margin 13.6%) compared to CHF 241 million (margin 12.6%) in the fourth
The repositioning of the portfolio in 2011 and 2012 has brought Clariant to a
sustainably higher level of profitability and net income. The Board of
Directors will therefore propose to the AGM an increased distribution of CHF
0.33 per share (+10%). The distribution is proposed to be made from the
capital contribution reserve that is exempt from Swiss withholding tax.
For 2013, Clariant expects a persisting soft macroeconomic environment
characterized by high volatility. While solid growth in the emerging markets
is most likely, no significant growth impulses are expected from the European
and the North American economies.
In this scenario, Clariant will focus on growing the seven core businesses and
a continuous cost discipline. This will lead to further top-line growth in
local currencies and an improved profitability in 2013. For the mid-term,
Clariant confirms its 2015 targets of an EBITDA margin of above 17% and a
return on invested capital (ROIC) above peer group average.
Excluding an additional charge of CHF 43 million in Q4 2011 as a result of
the sale of the former Süd-Chemie
inventories revalued to fair value less cost to sell.
- end -
CorporateMedia Relations Investor Relations
Kai Rolker Ulrich Steiner
Phone +41 61 469 63 63 Phone +41 61 469 67 45
Phone +41 61 469 67 49
Phone +41 61 469 63 63
Clariant is a globally leading specialty chemicals company, based in Muttenz
near Basel/Switzerland. On December 31, 2012 the company employed a total
workforce of 21,202. In the financial year 2012, Clariant recorded sales of
CHF 6.038 billion for its continuing businesses. Continuing businesses are
comprised of the following seven business units: Additives, Catalysis &
Energy, Functional Materials, Industrial & Consumer Specialties,
Masterbatches, Oil & Mining Services and Pigments. Clariant's corporate
strategy is based on four strategic pillars: profitability of the core
businesses, research & development and innovation, dynamic growth in emerging
markets, and repositioning of the portfolio.
Press Release english
Financial Review Q4 2012
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Source: Clariant Finance (Luxembourg) S.A. via Thomson Reuters ONE
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