Clariant suffers from unfavorable currency developments

Clariant, a world leader in specialty chemicals, announced sales of CHF 1.865 billion in the third quarter 2011, compared to CHF 1.709 billion in the previous year. This includes Süd-Chemie (SC) sales of CHF 356 million. In local currencies, sales growth amounted to 25%.

In Swiss francs, year-on-year sales were only 9% higher as the Swiss franc continued to strengthen against most major currencies especially in the first half of the third quarter.

Sales growth was driven by higher prices and the acquisition of Süd-Chemie. The less cyclical Business Units Additives, Catalysis & Energy, Functional Materials, Industrial & Consumer Specialties and Oil & Mining Services – accounting for roughly 50% of group sales – showed the most dynamic growth. By contrast, the slowdown in demand in the more cyclical businesses already observed in June has spread along the plastics value chain and into the coatings business.

Regionally, the traditional markets of Europe and North America outpaced Asia/Pacific, Latin America and the Middle East & Africa. In the emerging markets a slow-down in the dynamic growth of the last few quarters has been observed.

Excluding Süd-Chemie, sales increased by 5%, driven by a 9% increase in sales prices, while volumes decreased 4% compared to the previous-year period as a result of a combination of softening demand in some businesses and the deliberate loss of unprofitable contracts.

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