Clariant : delivers further progression in sales and EBITDA in the first nine months of 2018

Clariant AG / Clariant delivers further progression in sales and EBITDA in the first nine months of 2018 . Processed and transmitted by West Corporation. The issuer is solely responsible for the content of this announcement.

Sales grew by 6 % in local currency and Swiss francs to CHF 4.994 billion EBITDA before exceptional items increased significantly by 7 % EBITDA margin before exceptional items at a solid 15.3 % 2018 outlook confirmed

"In the first nine months of the year, Clariant has delivered strong sales and EBITDA", stated CEO Ernesto Occhiello. "Going forward, we will focus on growth and cost awareness, while emphasizing to an even greater extent customer-specific, technologically advanced applications and enhancing operating efficiencies. In addition, the implementation of the recently announced portfolio changes will further fuel substantial profitability progression."

Key Financial Data

	Third Quarter				Nine Months
in CHF Million	2018	2017	% CHF	% LC	2018	2017	% CHF	% LC
Sales	1 605	1 566	2	5	4 994	4 698	6	6
EBITDA before exceptional items	241	235	3		765	717	7
- margin	15.0 %	15.0 %			15.3 %	15.3 %

Nine Months 2018 - Growth progression continues

Muttenz, October 31, 2018 - Clariant, a world leader in specialty chemicals, today announced nine months 2018 sales of CHF 4.994 billion compared to CHF 4.698 billion in 2017. This corresponds to 6 % growth in local currency and in Swiss francs which was supported by both higher volumes and pricing. Contributions from all Business Areas bolstered the 6 % organic sales growth in local currency.

Most regions contributed to the sales growth. Latin America reported the strongest growth of 13 % in local currency. In Asia, sales rose by a robust 9 % mainly driven by China and India. Sales in North America grew by 6 % on the heels of strong expansion during the same time period in 2017. In Europe, sales advanced by a solid 4 %. Only the Middle East & Africa, the Group's smallest geographic region, reported a slight sales decrease of 3 %.

Care Chemicals and Catalysis both reported continued brisk demand momentum. Sales in Care Chemicals advanced by 9 % in local currency driven by both Consumer Care and Industrial Applications. Despite a high comparable bar, Catalysis sales climbed significantly by 12 % in local currency with a good organic sales growth of 8 %.

Natural Resources reported 7 % higher sales in local currency which reflects the improving oil environment. In Plastics & Coatings, sales progressed by 3 % in local currency despite a strong comparable base. All three Business Units contributed to this progression.

EBITDA before exceptional items rose by 7 % and reached CHF 765 million compared to CHF 717 million in the previous year. This improvement was driven by the positive development in Care Chemicals and Plastics & Coatings.

The corresponding EBITDA margin before exceptional items remained robust at 15.3 %.

Third Quarter 2018 - Sales increase and EBITDA improvement

In the third quarter of 2018, sales rose by 5 % in local currency to CHF 1.605 billion mainly due to price increases. Sales growth in Swiss francs was 2 % given the adverse currency impact in the quarter. The strong sales progression in Care Chemicals and Natural Resources contributed most to this advancement.

Most geographic regions added to the growth. Sales in Latin America progressed by 14 %, while North America and Europe both grew sales by 5 %. Sales in Asia improved 3 % in local currency year-on-year. China softened in the third quarter, but continued to develop well against a strong comparable base in the third quarter of 2017. Only the smallest region, Middle East & Africa, reported a minor sales contraction of 1 %.

Sales in Natural Resources climbed by 14 % supported by a notable demand uptake in the Oil & Mining Services business and an ongoing positive development in Functional Minerals. In Care Chemicals, sales rose by 8 % in local currency while Plastics & Coatings grew sales by 2 % underpinned primarily by the Pigments and Additives Business Units. Sales in Catalysis decreased by 4 % against a record quarter in the same period in the previous year.

EBITDA before exceptional items rose by 3 % to CHF 241 million primarily due to the strong contributions from Care Chemicals and Plastics & Coatings. The corresponding EBITDA margin before exceptional items remained at a solid 15.0 %.

Outlook for 2018 - Continued progression in growth, profitability improvement and operating cash flow generation

Clariant expects the economic environment in mature markets, which represent a high comparable base, to remain solid, albeit grow at a slower pace. Emerging markets are expected to remain broadly supportive.

For 2018, Clariant is confident to be able to achieve growth in local currency, as well as progression in operating cash flow, absolute EBITDA and EBITDA margin before exceptional items.

Going forward, as announced in September, Clariant expects to improve its performance as a result of further operational progression and the accelerated reshaping of its portfolio through the divestment of Pigments, standard Masterbatches and Medical Specialties as well as the creation of the new Business Area High Performance Materials.

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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       Clariant is a globally leading specialty chemicals company, based in Muttenz near Basel/Switzerland. On 31 December 2017 the company employed a total workforce of 18 135. In the financial year 2017, Clariant recorded sales of CHF 6.377 billion for its continuing businesses. The company reports in four Business Areas: Care Chemicals, Catalysis, Natural Resources, and Plastics & Coatings. Clariant's corporate strategy is based on five pillars: focus on innovation and R&D, add value with sustainability, reposition portfolio, intensify growth, and increase profitability.

9M 2018 Press Release english

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Source: Clariant AG via Globenewswire

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Clariant AG
Rothausstrasse 61 Muttenz 1 Switzerland

ISIN: CH0012142631;