Displaying items by tag: clariant

Clariant, a world leader in specialty chemicals, announced that the issuance of totally EUR 365 million in the German market for certificates of indebtedness ("Schuldschein"). The four certificates have a term of 3 years (EUR 242 million) respectively 4.5 years (EUR 123 million) each with fix or float coupons.

The interest to be paid for the certificates of indebtedness is based on six months Euribor (variable tranche) or mid-swap (fixed tranche), respectively, plus a credit margin premium (spread). Total interest costs per tranche are between 3.85% and 4.35% p.a. at present.

Following the emission of two Swiss franc bonds since May of 2011 - CHF 200 million maturing in 2015 and CHF 100 million maturing in 2017 - Clariant has further improved its maturity profile with the emission of these certificates. The proceeds are for general corporate purposes, specifically for the optimization of both debt financing structure and maturity profile.

Joint arrangers of the very successful issue were Bayern LB and LB Hessen-Thüringen.

Clariant announces the successful completion of its first production runs of Optical Brightening Agents (OBAs) at its facility in Prat, near Barcelona, Spain. The site produces dyes, pigment preparations and chemicals for the European and global paper market.

The first batches of hexasulphonated OBAs from the new reactors at Prat, installed in July 2011, are currently being delivered to customers. It marks the first OBA consignment to be produced in Spain as part of a transfer of Clariant’s OBA production from Muttenz, Switzerland.

Clariant is on-track to complete transfer of OBAs, colorants and chemicals for the paper market to Spain by the end of 2011. The move is part of Clariant’s on-going focus on sustainable growth, and commitment to continuous improvement for its operations.

Clariant, a world leader in specialty chemicals, adjusted its guidance for the full-year 2011 due to unfavorable foreign exchange rate developments and a softening of the global economy in the current business year. The mid-term EBITDA margin target for 2015 was confirmed.

The first two months of the second half-year have been marked by a continuing unfavorable development of foreign exchange rates and increasingly difficult economic conditions, negatively impacting Clariant’s operating business. While overall demand remained robust, a softening has become evident in some regions and end markets. In view of the developments in the last few weeks, the initial assumptions on exchange rates as well as on economic growth rates for 2011 are no longer valid. Therefore, the previous full-year 2011 guidance needs to be adapted to the changed conditions. Sales are expected at CHF 7.0 - 7.2 bn while the EBITDA margin before exceptional items should reach between 12.8% and 13.2%, still above the 12.7% reported in the last business year.

CEO Hariolf Kottmann commented: “We confirm our mid-term target of an EBITDA before exceptionals of above 17% for 2015. This is based on an improvement in our competitive position resulting from the global asset network optimization program, further savings as well as a successful integration of Süd-Chemie, which will substantially contribute to the group’s performance in the coming years. The solid base and the sound financial position achieved in the last two years allow us to consequently implement our profitable growth strategy.”

Conference Call
Clariant invites you to a conference call on September 5, 2011, at 07.30 am (CEST) to discuss the recent developments:

+41 (0) 91 610 56 00 (Europe)
+44 (0) 203 059 58 62 (UK)
+1 (1) 866 291 41 66 (USA - Toll-Free)

Playback
The playback will be available 1 hour after the conference call for 48 hours until September 7th inclusively:

+41 (0) 91 612 4330 (Europe)
+44 (0) 207 108 6233 (UK)
+1 (1) 866 416 2558 (USA)

Participants will be asked to enter the Code 17240 followed by the # sign.

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.”

Clariant, a world leader in specialty chemicals, today announced sales of CHF 1.870 billion in the second quarter 2011, compared to CHF 1.894 billion in the previous year. This includes Süd-Chemie (SC) sales of CHF 216 million for May and June. In local currencies, sales growth amounted to 14%. Due to the massive appreciation of the Swiss franc against most major currencies, sales were 1% lower in Swiss francs year-on-year.

The softening demand compared to the previous year and the unusually high comparable basis of the second quarter 2010 is reflected in a 5% decrease in volumes. Local currency sales saw double-digit growth in the Business Units Additives, Industrial & Consumer Specialties and Oil & Mining Services. At the regional level, a mixed performance was achieved with double-digit sales growth in local currencies in Asia, Europe, North America and Middle East & Africa but slightly lower sales growth in Latin America.

Raw material costs increased by 14% compared to the previous-year period. A strict focus on margin management led to an improvement in sales prices of 7%, thereby fully compensating for the increased raw material costs. Sequentially, a 3% increase in sales prices therefore fully offset a 5% increase in raw material costs. Despite successful margin management, the gross margin fell to 27.5% from 28.9% a year ago. This is mainly due to lower volumes and an unfavorable currency development.

The second quarter was marked by weakness in demand in April and rather solid demand in the rest of the quarter, although first signs of a slowdown in demand have been observed in some businesses. The sovereign debt crisis in Europe, the slow economic recovery in the United States, higher inflation rates in the emerging markets and the ongoing unrests in North Africa and the Middle East have led to a certain market caution.

Year-on-year, SG&A costs were virtually unchanged in both absolute terms and in percentage of sales, with CHF 307 million in Q2 2011 (16.4% of sales) compared to CHF 309 million (16.3% of sales). Although costs remained under control, EBITDA before exceptional items decreased to CHF 241 million (margin 12.9%) from CHF 264 million (margin 13.9%) a year ago. The operating profit (EBIT) before exceptional items stood at CHF 178 million (margin 9.5%) compared to CHF 211 million (margin 11.1%) in the second quarter 2010.

At constant currencies, EBITDA and EBIT before exceptional items would have been CHF 69 million (1.4 percentage points) and CHF 62 million (1.6 percentage points) higher respectively, i.e. margins would be virtually unchanged compared to the second quarter of last year.

Net income rose to CHF 40 million from CHF 25 million in the year-ago period, illustrating the lower restructuring and impairment expenses after completion of the 2009/10 restructuring phase.

Due to the slight increase in inventories, the relocation of production to Asia (Textile Chemicals) and Spain (Paper Specialties), and the normal seasonality, the cash flow from operations was minus CHF 101 million, below last year’s CHF 33 million. Net Working Capital as a percentage of sales remained under control with 20.0% compared to 20.2% in the previous-year period.

The acquisition of Süd-Chemie led to an increase in net debt to CHF 1,791 million from CHF 126 million at year-end, resulting in a gearing (net debt divided by equity) of 62% at the end of the second quarter of 2011. With the issuance of two Swiss franc bonds totaling CHF 250 million, the debt maturity profile has been extended at favorable conditions until 2015/17. The size of the bond issue has been increased by another CHF 50 million in July.

Update on Süd-Chemie acquisition

On April 21, Clariant completed the purchase of 96.15% of the shares in Süd-Chemie from One Equity Partners and the family shareholders. A public offer to acquire the shares from Süd-Chemie minority shareholders expired on June 14. Clariant acquired an additional 2.49% of Süd-Chemie, bringing the total shares acquired to 98.64%. The squeeze-out procedure to acquire all of the remaining shares in Süd-Chemie AG from minority shareholders was initiated on June 24 and is expected to be completed in the first half of 2012.

The integration process got underway in April. All project teams are fully operational and the integration is progressing according to plan.

In the second quarter, the consolidation of Süd-Chemie for two months contributed CHF 216 million in sales, CHF 34 million in EBITDA and CHF 17 million in EBIT before exceptional items.

Outlook 2011

At the beginning of 2011, Clariant shifted its focus from restructuring to continuous improvement and profitable growth. While the continuous improvement initiative “Clariant Excellence” will make the competitive cost basis sustainable, the company is now focusing on creating value by investing in future profitable growth.

Clariant expects a more difficult but nevertheless solid business environment in H2 2011, characterized by a softening demand. Exchange rates for the major currencies are expected to remain volatile. Commodity prices look set to continue to rise in the second half-year 2011, leading to an increase in raw material costs in the mid-teens compared to 2010.

For 2011, Clariant – including eight months of consolidated Süd-Chemie figures – expects sales in the range of CHF 7.8 to 8.0 billion and an EBITDA margin before exceptional items of 13.5% to 14.5%.

Unlock the secrets to successful innovation at Clariant’s new Innovation web-pages launched today. Visitors to www.innovation.clariant.com are invited on a journey through the chemistry behind the challenges critical to society’s safety and advancement. They can also find out how they can work with Clariant to contribute to a sustainable and comfortable future.

For news on issues that impact daily life, visitors can sign-up to the new quarterly webmagazine “Innovation Spotlight – the chemistry behind your comfort”. Animations show how the products we use in our daily life are made eco-friendlier, more efficient, and saver through Clariant´s chemistry.

“With our new `Innovation Spotlight`, we aim to take the mystery out of the chemistry and put the secrets to successful innovation at the fingertips of our customers and the general public,” explains Martin Vollmer, Chief Technology Officer at Clariant International Ltd. The Summer-issue 2011 looks at how Clariant’s pioneering, environmentally-considerate solutions are helping to improve the leather tanning process.

Moreover, with its easy-to-follow explanations the new web-page provides an educational and inspirational insight into chemistry’s role in cutting-edge technology such as renewable energy and raw materials, water management, and advanced materials.

In addition, details of the innovation process at Clariant highlight the specialty chemical expert’s focus on ensuring its organization is best-equipped to support its customers. But this is just one half of Clariant´s philosophy regarding innovation: “Innovation to meet not only the needs of our direct customers but also those of wider society is at the heart of Clariant’s business. We needed a way to share this that would make it easier to grasp and therefore to inspire people to get involved,” comments Vollmer.

For more information visit www.innovation.clariant.com.

Clariant offers papermakers new deposit control solutions with the addition of Cartaspers® SCH and Cartabond® DST.01 to its range. The extended portfolio has been developed specifically to improve machine cleanliness and runnability when wastepaper is used as a raw material in the papermaking process.

Cartaspers® SCH makes use of nano-technology to introduce trillions of tiny polymer particles into the wet-end of a paper machine system. The emulsion particles, which are hydrophobic in nature, are derived from a very hard (high melting point) polymer. In a typical wet-end environment, the tiny polymer spheres associate themselves with other hydrophobic components in the pulp slurry.

Cartaspers® SCH works through a mechanism of passivation, combining with pressure sensitive adhesives, latex binders, pitch and all other potential “stickie” contaminants, to give them a hard protective shell, which prevents agglomeration and reduces the tendency of stickies to foul machine clothing. The increased softening point of the passivated stickies helps prevent “picking” in the drying section and the transfer of contaminant to the hot cylinders is significantly reduced. Addition levels of Cartaspers® SCH are aligned with the degree of stickie contamination and the product is applicable to mills using wastepaper but also virgin fiber as a raw material.

Cartabond® DST.01 is a low charge cationic polymer solution designed to reduce turbidity in the wet-end circuits, without impacting on backwater or fiber charge. Micro-stickies are transferred onto fibers without significantly increasing particle size, unlike the traditional high-charge polyamine coagulants which are known for creating agglomerated secondary stickies; much larger particles responsible for machine contamination and sheet quality problems. Primarily, but not exclusively, for Tissue grades, the Cartabond® DST.01 polymer is rich in hydrogen bonding groups and has been proven as a dry strength additive. The product therefore provides dual functionality and replaces both the coagulant and dry strength resin.

These new products join the patented and recently launched Cartaspers® PSM in Clariant’s Deposit Control range. Cartaspers® PSM provides protection for machine wires and felts, in the form of a hydrophilic coating, which prevents the adhesion of stickies. Added to the shower water, Cartaspers® PSM modifies the surface energy of the fabric monofilaments and ensures a continuous hydrophilic barrier, so that stickies are rinsed away before they can build up on machinery. With this new technology, solvent cleaning of machine clothing is hardly ever required.

The complementary additions to Clariant’s range of deposit control solutions, with the launch of Cartaspers® SCH and Cartabond® DST.01, address a key challenge facing Papermakers; the efficient use of wastepaper, in the papermaking process.

Clariant gives papermakers the unique opportunity to use up to 30% less optical brightening agent (OBA), reduce tinting colorant levels, and reach a truer, more neutral white, with the launch of its breakthrough whitening system Leucophor® XL.

The globally-available Leucophor® XL range offers a new approach to controlling and optimizing whiteness. Its innovative technology improves whiteness build-up without destroying brightness for coated and uncoated papers and board. This provides a step-change in the whiteness and brightness of paper compared to conventional whitening methods where the colorant can make paper appear duller and grayer.

Papermakers can achieve significant improvements in their manufacturing efficiency with Leucophor® XL. By replacing traditional brighteners with an OBA from the Leucophor® XL range, significantly less OBA is required in order to achieve equal whiteness levels. At the same time, lower levels of shading colorants are required in the wet-end, leading to higher brightness at less cost. By moving away from the OBA saturation limit, previously unattainable whiteness levels are made possible.

The Leucophor® XL range comprises products to cover all variations in application and potential end-use requirements.

“We see our new Leucophor® XL range as a toolkit which helps papermakers to reduce their consumption of optical brighteners and tinting colorants while continuing to produce papers to the same or even higher whiteness standards as before,” comments Andrew Jackson, Head of Global Product Management Optical Brightening Agents. “As well as bringing cost savings, this innovative approach to whiteness also reduces the carbon footprint of printing and writing papers, a move very much in line with Clariant’s sustainability concept."

Clariant, a world leader in specialty chemicals, has appointed Dr. Hans-Joachim Müller member of the Executive Committee. He will join the company on July 1, 2011.

Hans-Joachim Müller, born 1959, joins Clariant from Süd-Chemie AG, where he was as Member of the Managing Board. Before he was Head of the global Business Unit Catalytic Technologies at Süd-Chemie, developing this business into a global market leading position. He holds a PhD in chemistry from the Ludwig-Maximilian-University in Munich, Germany.

Clariant's CEO Hariolf Kottmann commented: "I am pleased that Hans-Joachim Müller has accepted the offer to join the Executive Committee of Clariant. With his broad leadership experience in the chemicals industry and his deep understanding of the Süd-Chemie businesses he will guarantee for continuity and contribute to the successful execution of our profitable growth strategy."

Hans-Joachim Müller will be responsible for the two Business Units Catalysis & Energy and Functional Materials.

Clariant publishes 2011 and 2015 targets including Süd-Chemie
 Focus on disciplined value-based performance management to drive growth
 Intention to reinstate dividend payments for the current business year

Clariant, a world leader in specialty chemicals, has raised today its 2011 sales and margin targets on the occasion of its capital markets event. The company expects sales growth in the high single-digit range in local currency compared to 2010 and an EBITDA margin between 13.5-14.5%. For 2015, Clariant targets sales above CHF 10 billion and an EBITDA margin before exceptional items above 17%.

Based on its four pillars strategy and supported by the continuous improvement initiative “Clariant Excellence”, Clariant is well underway to meet its 2015 targets. A consequent implementation of performance optimization measures in the current portfolio, the build-up of an efficient R&D and Innovation organization, the elimination of geographical and technological gaps as well as M&A transactions are key to achieve the ambitious goals.

CEO Hariolf Kottmann commented: “With the beginning of 2011, Clariant has switched from restructuring to growth. Our well-positioned traditional businesses have further potential to improve their performance while the newly to be integrated Süd-Chemie businesses will drive higher sales growth and help to improve our margins. Applying our value-based performance management approach, we are confident to achieve our mid-term targets until 2015, using both organic growth and portfolio management.”

Clariant also reconfirmed its policy of paying a stable dividend going forward, with the intention to resume dividend payments for the full-year 2011.

Clariant to present functional chemicals for paper at Zellcheming Expo 2011 from June 28 to 30, 2011, in Wiesbaden in Hall 3, Booth 318

Clariant presents new optical brightening agent Leucophor® XL at Zellcheming Expo 2011 (Booth 318, Hall 3) as part of the product’s global market launch. The novel tinted optical brightening agent for surface application gives a truer white and less red cast, providing high-white grades of paper with less OBA and accordingly less cost. The innovation is an excellent combination of cost-optimization and performance.

A further highlight at Zellcheming is Cartaspers® PSM, which reduces stickies and pitch on sieves and felts by passivation and thereby increases running time. At the same time exposure of both factory staff and the environment to volatile organic compounds is reduced. In acknowledgement of this, the US Environmental Protection Agency (EPA) awarded the Pollution Prevention Recognition Award to Cartaspers PSM.

The rapid boom in 2010 brought about shortage and an increase in price for energy, raw materials and intermediary products. This development is still ongoing and presents a great challenge to each link in the supply chain. Clariant sees its role as a supplier of specialty chemicals within this environment as being to provide customers with cost-effective solutions to enhance their products and processes. Higher cost pressure need not lead to quality limitations for paper and cardboard. In line with this Clariant will also present the product groups Cartabond®, Cartacol®, Cartacoat®, Cartafix®, Cartafluor® and Cartaseal®.

With the product groups Carta®, Cartasol®, Diresul®, Cartaren®, Flexonyl® Clariant presents colorants and pigments for nuancing white and highly white paper as well as for mass-coloring paper and surfaces to suit all demands, for every chromaticity coordinate and in any tinting strength.

Cartabond® crosslinker for better moisture resistance of paper coating.
Cartabond® surface strength improvers also increase drainage and save energy in paper production.
Cartacol® surface treatment chemicals improve printability, and paper- and print gloss.
The synthetic emulsion polymers for special papers, Cartacoat®, improve rheology for coating colors.
Cartafix® provides better fixation of dyestuffs, improved retention as well as control of interfering substances.
Cartafluor® fluorochemical grease barriers for high barrier demands.

The barrier chemicals Cartaseal® can be used for a variety of purposes such as anti-slip coating, water and water vapor barriers, and temperature resistance.