Displaying items by tag: clariant

Clariant, a world leader in specialty chemicals, today announced sales of CHF 1.717 billion for the first quarter of 2011 compared to CHF 1.817 billion in the previous-year period. Sales growth in local currencies amounted to 5%. Due to the appreciation of the Swiss franc against most major currencies, sales were 6% lower in Swiss francs year-on-year.

Overall trading conditions remained stable during the quarter with no restocking activities observed as in the first quarter of 2010. At the regional level, sales growth was quite uniform across all regions with growth rates of between 4% and 7%. The impact from both the disastrous earthquake in Japan and the unrest in North Africa on the business was minimal so far.

In the first quarter, Clariant continued to consistently implement its profitable growth strategy. As a result of the focus on margin management, sales prices improved 5% year-on-year. While not fully compensating for higher raw material costs yet, sales prices increased 2% sequentially with dynamics picking up towards the end of the quarter. This successful price management, lower production costs and a high capacity utilization drove the gross margin up to 29.8% from 28.7% in the same period a year ago.

Clariant further benefited from the positive impact of the implementation of its 2009/10 cost reduction initiatives. Selling, general & administrative (SG&A) costs as a percentage of sales decreased substantially to 15.0% from 16.9% in comparison to the prior-year period. The structurally lower cost base supported the margin development. As a consequence of a better gross margin and lower costs, the EBITDA before exceptional items increased to CHF 277 million, compared to CHF 235 million one year ago. The corresponding margin rose to 16.1% from 12.9% in the previous-year period. The operating profit (EBIT) margin before exceptional items improved to 13.4% from 10.1% in the same period one year ago.

The EBITDA and EBIT margins after restructuring improved to 15.1% from 7.4% and to 11.7% from 4.1% respectively, illustrating the lower restructuring and impairment expenses after completion of the 2009/10 restructuring phase.

Cash flow from operations stood at CHF 17 million, considerably lower than the CHF 159 million achieved in the previous year. After an overly tight management of working capital towards the end of 2010, inventories returned to more normalized levels, therefore negatively impacting the cash flow from operations in Q1.

Net debt increased to CHF 250 million from CHF 126 million, resulting in a gearing (net debt divided by equity) of 13% at the end of the first quarter of 2011, slightly higher than the 7% recorded at the end of 2010.

Update on Süd-Chemie acquisition

On 21 April, Clariant completed the purchase of 96.15% of the shares in Süd-Chemie from One Equity Partners and the family shareholders. The overall transaction value amounted to approximately EUR 1.9 billion (CHF 2.5 billion). A public offer to acquire the outstanding shares from Süd-Chemie minority shareholders will be initiated before the end of May 2011. Süd-Chemie will be fully consolidated as of 21 April 2011.

After closing the acquisition, Clariant started the integration process in order to achieve a quick and seamless integration of the Süd-Chemie businesses into Clariant.

As further steps in the execution of its profitable growth strategy, Clariant has acquired the North American de-icing specialist Octagon Process LLC on 19 March 2011, and the Saskatchewan, Canada-based oil services company Prairie Petro-Chem on 1 April 2011.

Outlook 2011
Starting 2011, Clariant shifted its focus to continuous improvement and profitable growth following the completion of restructuring in 2010. While the continuous improvement initiative “Clariant Excellence” will make the lower cost basis sustainable, the company is now focusing on creating value by investing in future profitable growth.

Clariant expects global economic growth to continue in 2011 but at a slower pace than in 2010. Exchange rates for the major currencies are expected to remain volatile. Growth will mainly come from the emerging markets in Asia/Pacific and Latin America. Commodity prices are expected to continue to rise in 2011, leading to an increase in raw material costs in the mid-teens.

Clariant – excluding the recently acquired Süd-Chemie – expects 2011 sales growth in local currencies in the low single-digit range. Additional benefits from the restructuring measures taken during the last two years will improve the company’s cost position, resulting in a positive impact on the operating result. The EBITDA margin before exceptional items is therefore expected to rise above the 2010 level.

• Clariant holds 96.15% in Süd-Chemie after closing

• Integration process launched

• Accelerating profitable growth

Clariant, a world leader in specialty chemicals, today announced that it has completed the purchase of 96,15% of the shares in Süd-Chemie from One Equity Partners and the family shareholders.

Clariant will make a public offer to acquire the outstanding shares from Süd-Chemie minority shareholders. The overall transaction value amounts to approx. EUR 1.9 billion (CHF 2.5 billion).

“This transaction is an important milestone in Clariant’s history. Following the successful completion of our restructuring in 2010, the acquisition of Süd-Chemie accelerates our strategy of profitable growth”, said Hariolf Kottmann, CEO of Clariant. “Together we will now start the integration process to successfully integrate Süd-Chemie into Clariant”, Kottmann added.

By acquiring leading positions in the fields of process catalysts and adsorbent agents, Clariant is expanding its portfolio with two fast-growing business-units. Süd-Chemie also has a strong research and development organization focusing on market segments with significant growth potential.

The Swiss specialty chemical company Clariant has published its 2010 Sustainability Report. Over the course of 60 pages, the company describes how sustainability and innovation go hand in hand along Clariant’s entire value chain. The data, which are collected at all operating levels and in all regions and consolidated at Group level, demonstrate that Clariant has made great progress with key parameters in recent years.

Between 2005 and 2010, CO₂ emissions decreased by more than 40%, energy consumption fell by 35% and water consumption dropped by 30%. The Global Reporting Initiative (GRI), a globally renowned, independent organization for sustainability reporting standards, performed a critical review of the report and confirmed adherence to application level A, its highest reporting level. “Clariant sees this as an obligation to continue to work on the area of sustainability and to make improvements.

We firmly believe that following the successful completion of our restructuring, profitable growth can only come with sustainability,” said Hariolf Kottmann, Chief Executive Officer of Clariant International Ltd.

The 2010 Sustainability Report and further information about the Clariant Group can be found at www.clariant.com.

From sustainability benefits and vibrant colors to enhanced printing and whiteness, Clariant presents its range of value-creating solutions to meet the challenges of the paper, pulp and cardboard sectors at Maqpaper 2011 (Booth 21).

The Business Unit Paper Specialties is a leading supplier of Optical Brighteners, Colorants and Chemicals for the paper market. Its focused product range enhances both optical and functional properties of all kinds of paper and board.

“In an evolving industry, we are constantly striving to help our customers meet the challenges set by market demands and legislation. Be it enhanced optical and functional properties, Clariant can offer solutions and develop new alternatives through extensive technical support.” comments Ricard Llebaria, Country Sales Manager - BU Paper Specialties.

Whiteness, color, coating and strengt solutions will be among the solutions on show at Clariant’s Booth #21.

Clariant is one of few companies to offer papermakers the complete range of colorants, including exclusive and standard colorants in optimized formulations with higher stability. Other highlights at Maqpaper 2011 include innovative coating concepts that eliminate the potential for printing defects, and Optical Brightening Agents (OBAs) that achieve high whiteness and brightness levels alongside maximum efficiency.

Clariant works extensively to support its customers in the paper industry in their efforts to improve the sustainability of their own products and processes.

It is at the forefront of REACH registration for its OBAs and other paper chemicals. Clariant also offers more than 140 dyes, OBAs and chemicals which are in line with EU Ecolabel “EU Flower” for copying and graphic paper. A similar number of products are compliant with Nordic Swan eco-label requirements certified by ISEGA. Many products have been developed in line with standards and recommendations for food contact applications (FDA and BfR), and with the regulations of the Environmental Protection Agency (EPA).

For more information visit Booth 21 or www.paper.clariant.com.

Clariant, a world leader in specialty chemicals, announced today that the 16th Annual General Meeting adopted each of the resolutions proposed by the Board of Directors.

515 shareholders, representing roughly 31% of the share capital recorded in Clariant's share register attended the Annual General Meeting (AGM) held on March 31, 2011 in Basel.

The AGM approved the Annual Report of the company and discharged the corporate bodies of the company for their actions in the business year 2010. In view of the funds to be used for the acquisition of Süd-Chemie AG, the shareholders voted for the proposal to forego payment of a dividend and to allocate the available net profit to the free reserves. For the first time, the AGM voted on the compensation policy and approved the policy by means of a consultative vote.

The Board of Directors was authorized by the AGM to create share capital for the acquisition of Süd-Chemie AG, Munich, Germany. Share capital can be increased to a maximum of
CHF 340 000 000 by issuing a maximum of 85 000 000 fully paid up registered shares, each with a par value of CHF 4.00. The part of the capital increase not allocated to the family shareholders will be executed in the form of an at-market rights issue announced on or around April 7, 2011.

The AGM elected and respectively re-elected several members of the board of directors. For the first time, the current Süd-Chemie board members Dr. Dolf Stockhausen and
Konstantin Winterstein as well as Süd-Chemie CEO Dr. Günter von Au were elected to the Board of Directors. The elections remain under the condition precedent that those newly-elected members will step down from their current roles at Süd-Chemie AG.

Dr. Peter Isler, member of the Board of Directors since 2004, Dr. Dominik Koechlin, member since 2008, Dr. Hariolf Kottmann, member since 2008, Carlo G. Soave, member since 2008, Dr. Rudolf Wehrli, member and Vice-Chairman since 2007 and Dr. Jürg Witmer, Chairman of the Board of Directors since 2007, were all re-elected individually.

Clariant’s Business Unit Paper, a leading supplier of Optical Brighteners, Colorants and Chemicals to the Paper industry, announces price increases across its product portfolio.

The adjustments, which take immediate effect, are necessary to recover significant on-going cost inflation in raw materials, labor, energy and transportation.

Price increases of 8% will affect all product groups and as contracts allow. Selected individual products will experience higher increases due to the severe impact of their particular raw material cost increase.

Clariant’s customers will be contacted individually regarding the specifics of the price increases as they apply.

For more information about Clariant’s Paper Business, please visit www.paper.clariant.com.

Clariant AG is planning the acquisition of a controlling majority in Süd-Chemie AG and has thereto signed a contract with the majority shareholders.

As part of the planned transaction, still subject to clearance by competent merger control authorities, Clariant has come to agreements with the majority shareholder One Equity Partners (50.4%) and the family shareholders (approximately 46%). As a result, Clariant will acquire slightly above 95% of the outstanding shares. The shares of One Equity Partners will be bought at a price of EUR 121 per Süd-Chemie share. The vast majority of the Süd-Chemie family shareholders will swap their shares into Clariant shares at a ratio of 1:8.84. The total value of the transaction is EUR 2.0 billion (CHF 2.5 billion).

With around 6,500 employees in 40 countries, Süd-Chemie operates two stable and profitably growing business units that hold a global leading position in the areas of process catalysts and adsorbents. Furthermore, Süd-Chemie has a strong Research & Development pipeline for new business areas with substantial growth potential. Those include innovative materials for lithium-ion batteries and biotechnology, e.g. technology for the production of second generation bioethanol. Süd-Chemie has demonstrated high levels of innovation coupled with success in the commercialization of its products.

With turnover of EUR 1,225 million[1] and EBITDA of EUR 191 million¹, Süd-Chemie generated an EBITDA margin in 2010 of 15.6%¹.

"We are convinced that Süd-Chemie is the right strategic fit for Clariant. It complements our portfolio with high growth businesses, less cyclicality and it provides Clariant access to new attractive market segments. Süd-Chemie will further drive our profitable growth forward in the coming years", said Clariant AG CEO Hariolf Kottmann. "The planned acquisition also offers clear advantages for both companies as our investment will strengthen our research in future markets such as new materials and biotechnology in a focused way", said Kottmann.

In line with Clariant's financing policy, the transaction will be conservatively financed. The envisaged and approximate financing structure includes CHF 700 million share exchange with Süd-Chemie family shareholders, CHF 400 million rights issue, CHF 900 million debt financing and CHF 500 million cash. The issue of new shares is subject to approval at the Clariant general meeting on March 31, 2011. Once all necessary regulatory approvals, including anti-trust, are obtained, Clariant is confident that the transaction can be completed in the first half of 2011. No later than after the Closing of the share purchase agreements, Clariant will initiate a public takeover procedure for the remaining free float.

After having successfully completed its restructuring in 2010, this transaction supports Clariant's new strategic direction towards profitable growth. In addition to continued improvement in the profitability of the existing portfolio and a focus on innovation and growth in emerging markets, the portfolio will be strengthened by further investments in future markets and technologies.

Comar Chemicals (Pty) Ltd will establish a second production site for its organo metallic catalysts and nano-particle chemicals at Clariant’s new “Infrapark® Baselland” in Muttenz, Switzerland during the course of 2011. This plant will service European and other overseas customers of Comar Chemicals (Pty) Ltd (“Comar”).

Within Infrapark® Baselland, Comar will utilize a multi-storey modern production building that has a footprint of approximately 1200 m2. A complex specialty chemicals process plant will be established, that makes full use of existing utility infrastructure provided at the Infrapark® Baselland. Amongst the new location's activities will be Comar’s R&D efforts to develop innovative specialty chemicals. Overall, employment opportunities will be generated in due course for some 30 personnel.

Comar’s products include rare earth catalysts that are used in the synthetic rubber industry to manufacture advanced rubber types. These are used to produce car tires with the least rolling resistance, leading to lower CO2 emissions of cars.

The nano-particle chemicals are used in advanced proprietary pollution abatement systems.

The announcement, which follows the signing of a framework agreement between Comar and Clariant Produkte (Schweiz) AG on January 7, 2011, makes Comar the first company to settle at Infrapark® Baselland since its launch at the beginning of January 2011.

Infrapark® Baselland is a new industrial park aimed primarily at research and manufacturing companies from the chemicals and life science industries. Owned by Clariant, it is located on the company’s site in Muttenz in the Swiss Canton of Baselland, which lies at the border triangle of Switzerland-Germany-France. The park offers comprehensive services for successful research, development and manufacturing activities at one location.

Comar will join PanGas, Bayer and Aprentas, the training association of the Basel chemical and pharmaceutical industry, who were already operating in the area prior to its transformation into a dedicated industrial park.

The management of Comar Chemicals (Pty) Ltd comments: “Comar’s primary reasons for choosing the Infrapark® Baselland above other European sites, are Basel’s excellent chemical industry service infrastructure, the location of Basel in the centre of Europe, and the technical excellence of Swiss higher education institutions that create a general high standard of education and productivity among Swiss employees. Together these factors can contribute to Comar’s chemical technology development.”

Renaud Spitz, Country Manager of Clariant Schweiz and Manager of the Infrapark® Baselland, adds: “Clariant is very pleased to welcome Comar to Infrapark® Baselland. We would like to thank BaselArea Economic Promotion and the Volkwirtschafts and Gesundheits-Direktion of the Canton Baselland for their joint efforts and support in making this possible. We see Comar with its specialty chemicals portfolio of catalysts and nano-particle chemicals, as an excellent contributor to the development of a highly specialized chemical industry in the Basel area that is able to provide innovative products that are at the fore-front of technological developments in their respective fields”.

Clariant will be presenting its 2010 Full Year Results on 16 February, 201

Location:

SIX Swiss Exchange

ConventionPoint

Selnaustrasse 30

CH-8021 Zürich

www.conventionpoint.ch

Please register with Edith Schwab (This email address is being protected from spambots. You need JavaScript enabled to view it.) - by latest Wednesday February 9, 2011, if you want to attend the full year results presentation in person.

You will also have the opportunity to join the media conference via a live webcast at the following location:

http://gaia.world-television.com/clariant/20110216/mc/extern/trunc

Or by dialing in via phone line by using one of the following numbers:

+41 (0) 91 610 56 00 (Europe)

+44 (0) 203 059 58 62 (UK)

+1 866 291 41 66 (USA - Toll-Free)

Questions may be raised via the webcast or via the e-mail address: This email address is being protected from spambots. You need JavaScript enabled to view it..
In order to enable us to start on time we ask all participants to dial in 5 - 10 minutes before the conference is scheduled to start.
An audio plug-in capability will be made available during the press conference.

Please note that the press release along with other supporting material will be issued and posted on www.clariant.com at 07.00 CET on February 16.

As of January 2011, Clariant’s entire range of Leucophor® optical brighteners (OBAs) on general sale in Europe comprises substances which are fully-registered under REACH.

The first phase of REACH, the Registration, Evaluation, Authorization and Restriction of Chemical Substances, was completed at Clariant by 30 November 2010. Since that time, Clariant has registered the remaining active substances of its Leucophor range, well ahead of the REACH Phase Two deadline in the year 2013.

The successful registration of Leucophor active substances means Clariant’s customers can depend on the future availability of the Leucophor range. Achieving full registration of its Leucophor range puts Clariant at the forefront of REACH legislation for OBAs, with each OBA supported by an extensive registration dossier.

“Clariant regards product safety as being of the utmost importance”, comments Andrew Jackson, Head of Product Management OBAs at Clariant Paper Specialties. “Our very significant investment in ensuring the full registration of our chemistries under REACH further demonstrates our commitment to our long-term future in optical brighteners.”