Clariant adjust full-year guidance13 September 2011
Clariant announced on September 5 that they had adjusted their guidance for the full-year 2011 due to unfavourable 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 Clariant portfolio includes their Leather Services business unit.
The first two months of the second half-year have been marked by a continuing unfavourable 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in the last few weeks, the initial assumptions on exchange rates as well as on economic growth rates for 2011 are no longer valid.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 optimisation 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.’