-
Sales increased by 5 % in
local currency to CHF 6.623 billion
-
EBITDA before exceptional items
improved by 5 % in Swiss francs, exceeding
CHF 1 billion
-
EBITDA margin before
exceptional items expanded to 15.4 %
-
Net income climbed by 18 %
to CHF 356 million
-
Operating cash flow rose by
24 % to CHF 530 million
-
Proposed dividend increase of
10 % to CHF 0.55 per share
-
Outlook 2021: above-market
growth, higher profitability and stronger cash
generation
|
|
|
"In 2018, Clariant achieved good
sales and profit growth and significantly improved operating cash
flow despite an increasingly challenging environment." said Ernesto
Occhiello, CEO of Clariant. "Going forward, we will continue to
identify and address the next challenges and future demands within
our respective businesses and those of our customers. This, coupled
with best customer experience and fast, reliable customer
fulfillment will trigger above-market growth, higher profitability
and stronger cash generation."
Key Financial Data
|
Fourth Quarter |
Full Year |
in CHF million |
2018 |
2017 |
% CHF |
% LC |
2018 |
2017 |
% CHF |
% LC |
Sales |
1 629 |
1 679 |
-3 |
3 |
6 623 |
6 377 |
4 |
5 |
EBITDA before
exceptional items |
253 |
257 |
-2 |
|
1
018 |
974 |
5 |
|
- margin |
15.5 % |
15.3 % |
|
|
15.4 % |
15.3 % |
|
|
EBITDA after
exceptional items |
|
|
|
|
871 |
813 |
7 |
|
-
margin |
|
|
|
|
13.2 % |
12.7 % |
|
|
EBIT |
|
|
|
|
546 |
496 |
10 |
|
Net
income |
|
|
|
|
356 |
302 |
|
|
Operating cash
flow |
|
|
|
|
530 |
428 |
|
|
Number of
employees* |
|
|
|
|
17 901 |
18 135 |
|
|
* as of 31 December
Full Year 2018 -
Higher sales and continued EBITDA expansion
Muttenz, February 13, 2019 -
Clariant, a focused and innovative specialty chemical company,
today announced full year 2018 sales of CHF 6.623 billion
compared to CHF 6.377 billion in 2017. This corresponds
to 5 % growth in local currency, all of which is organic,
driven by a progression in all Business Areas, particularly in
Catalysis. Both higher volumes and pricing underpinned this
expansion.
For the full year, all regions
contributed to the sales growth in local currency. Sales in Latin
America grew the strongest, by 12 %. Sales in Asia increased
by 7 %, bolstered by a particularly positive development in
China and India. In North America, sales rose by 5 %. Both
Europe and the Middle East & Africa increased sales by
2 %.
The improved sales performance for
the full year resulted from growth in all Business Areas with Care
Chemicals, Catalysis and Natural Resources reporting strong
expansion. Sales in Care Chemicals rose by 7 % in local
currency primarily supported by Consumer Care. Catalysis sales
improved by an excellent 11 % in local currency with a strong
organic sales growth amounting to 8 %.
Natural Resources sales
accelerated by 8 % in local currency, mainly lifted by
improved Oil & Mining Services demand and solid
growth in Functional Minerals. In
Plastics & Coatings, sales rose by 1 % in local
currency with particularly strong regional expansion in Latin
America.
EBITDA before exceptional items
rose by 5 % in Swiss francs and reached
CHF 1.018 billion, compared to CHF 974 million
in the previous year. The absolute profitability improvement was
attributable to the positive contributions from Care Chemicals,
Catalysis and Plastics & Coatings.
The corresponding EBITDA margin
before exceptional items advanced to 15.4 % from 15.3 %
in the previous year.
Net income climbed by 18 % to
CHF 356 million from CHF 302 million in full
year 2017. This increase was supported by the improvement in
absolute EBITDA as well as lower one-off costs and a lower
effective tax rate.
Operating cash flow rose
significantly by 24 % to CHF 530 million from
CHF 428 million in the previous year due to the improved
absolute EBITDA and net working capital management. This positive
development is particularly noteworthy given the one-off tax
settlement amounting to CHF 83 million paid in the first
half of 2018.
Net debt decreased to
CHF 1.374 billion versus CHF 1.539 billion
recorded at the end of 2017.
The continued improvement in
performance allows the Board of Directors to propose a dividend of
CHF 0.55 per share to the Annual General Meeting. This sum
reflects an increase of 10 % compared to the previous year.
This distribution is proposed to be made from the capital
contribution reserve, which is exempt from Swiss withholding
tax.
Fourth Quarter 2018 - Improvement
in local currency sales and profitability
In the fourth quarter of 2018,
sales rose by 3 % in local currency to
CHF 1.629 billion. This represents a decrease of 3 %
in Swiss francs year-on-year due to unfavorable currency
fluctuations. The sales growth in local currency was mainly driven
by Catalysis and Natural Resources.
Almost all regions contributed to
the growth. In the Middle East & Africa, sales
in local currency grew by a robust 15 % driven mainly by
Catalysis. Sales in Latin America increased by 9 % in local
currency supported by Oil & Mining Services, in North America
by a solid 3 % and in Asia by 2 % with a slowing in
China. Only sales in Europe had a negative growth of 2 %
largely due to the particularly challenging comparison base.
Catalysis sales grew by 9 %
in local currency mainly as a result of higher demand for
Petrochemical Catalysts. Natural Resources sales climbed by
11 % in local currency with positive contributions from both
the Oil & Mining Services as well as the Functional Minerals
businesses. Sales in Care Chemicals rose by 1 % in local
currency, supported by the Consumer Care businesses. Sales in
Plastics & Coatings were 3 % lower in local
currency due to the softening demand in Asia and Europe in
particular.
EBITDA before exceptional items
decreased by 2 % in Swiss francs to CHF 253 million
from CHF 257 million in the previous year, driven by the
temporary softer margins in Care Chemicals and Natural
Resources.
Nevertheless, the EBITDA margin
before exceptional items on Group level increased to 15.5 %
from 15.3 % in the previous year due to the strong margin
improvement in Catalysis which more than compensated for the
profitability softness in Care Chemicals and Natural Resources.
Outlook 2021
- above-market growth, higher profitability
and stronger cash generation
Clariant is a focused and
innovative specialty chemical company. We aim to provide more than
just customer-oriented products. We strive to provide the best
customer experience and fast, reliable customer fulfillment in the
industry by setting the right priorities.
Our aim is to make our customers
more successful. We therefore constantly focus on timely and
rewarding innovations, products that are difficult to imitate,
sustainability, agility as well as ethical practices. We will only
be satisfied with the highest level of excellence in every function
within the Group. Our success will be realized through the
execution of our strategy.
We confirm our 2021 guidance to
achieve above-market growth, higher profitability and stronger cash
generation.
Corporate Media Relations |
Investor Relations |
Jochen Dubiel
Phone +41 61 469 63 63
jochen.dubiel@clariant.com |
Anja Pomrehn
Phone +41 61 469 67 45
anja.pomrehn@clariant.com |
Thijs Bouwens
Phone +41 61 469 63 63
thijs.bouwens@clariant.com |
Maria Ivek
Phone +41 61 469 63 73
maria.ivek@clariant.com |
|
|
Follow
us on Twitter, Facebook, Google Plus, LinkedIn. |
|
This media release contains certain statements that are neither
reported financial results nor other historical information. This
document also includes forward-looking statements. Because these
forward-looking statements are subject to risks and uncertainties,
actual future results may differ materially from those expressed in
or implied by the statements. Many of these risks and uncertainties
relate to factors that are beyond Clariant's ability to control or
estimate precisely, such as future market conditions, currency
fluctuations, the behavior of other market participants, the
actions of governmental regulators and other risk factors such as:
the timing and strength of new product offerings; pricing
strategies of competitors; the Company's ability to continue to
receive adequate products from its vendors on acceptable terms, or
at all, and to continue to obtain sufficient financing to meet its
liquidity needs; and changes in the political, social and
regulatory framework in which the Company operates or in economic
or technological trends or conditions, including currency
fluctuations, inflation and consumer confidence, on a global,
regional or national basis. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this document. Clariant does not undertake
any obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after
the date of these materials.
www.clariant.com
|
FY 2018 Press Release EN
FY 2018 Financial Review