Clariant delivers significantly improved operating cash flow and a higher profitability in the first

Clariant, a world leader in speciality chemicals, has announced first half 2016 sales of CHF2.899bn compared to CHF2.871bn yr-on-yr. This corresponds to a 3% growth in local currency driven by higher volumes.

Growth was strongest in Latin America, where sales grew by 10% in local currency. In the Middle East & Africa, yr-on-yr sales were up 7% in local currency. North America saw a small decline of 2% coming from a lower demand in Catalysis and Natural Resources, while Asia grew at 2%, with more stability in China, and Europe at 1% driven by volume increases.

The improved business performance in the first half year primarily stemmed from higher growth in Care Chemicals and Plastics & Coatings. In Care Chemicals, sales in local currency increased by 5% to CHF750M. Sales in Catalysis showed a decline of 9% in local currency, reaching CHF285M due to a lower demand in different regions particularly in China.

Despite the difficult market environment, sales in Natural Resources were stable in local currency and amounted to CHF557M. There was a slight decline in Oil and Mining Services, whereas Functional Minerals continued to grow. In Plastics & Coatings, sales in local currency grew by 5% to CHF1.307bn. The good sales performance in Plastics & Coatings was seen across all regions.

The EBITDA before exceptional items increased by 9% in local currency and reached CHF444M, compared to CHF417M yr-on-yr. Major contributors to the profitability improvement were Care Chemicals and Plastics & Coatings.