CLARIANT AG 
-- Sales from continuing operations increased by 2 % in local currency to
CHF 1.002 billion, reflecting a broad recovery in our markets
-- EBITDA of CHF 164 million rose by 4 % in Swiss francs, generating a
notably improved EBITDA margin at 16.4 % (vs. 15.4 %)
-- Pricing actions have been initiated to offset rising raw material and
logistics cost
-- Outlook 2021 Continuing Operations: moderate local currency sales growth
and a step up in EBITDA margin to slightly above pre-COVID-19 pandemic
levels
"The first quarter of 2021 demonstrated both Clariant's return to growth
as well as a sequential improvement in the Group's performance. This
progression was achieved through our portfolio of attractive businesses
and the disciplined execution of our strategy and performance
improvement programs," said Conrad Keijzer, CEO of Clariant. "I would
like to thank our teams for effectively mastering the current challenges
amidst the continued COVID-19 pandemic; rising raw material cost as well
as disruptions in supply chains. In 2021, we strive to make an important
step up in our performance and expect Clariant to achieve moderate sales
growth in local currency and a recovery in EBITDA margins to slightly
above pre-COVID-19 pandemic levels. With our partnership with India
Glycols Limited for green surfactants, we continue to advance our
portfolio transformation toward a higher specialty value business."
Key Financial Data
Continuing operations First Quarter
-------------------------- ----- -------------------------
in CHF million 2021 2020 % CHF % LC
Sales 1 002 1 019 -2 2
EBITDA 164 157 4
16.4 15.4
- margin % %
EBITDA before exceptional
items 168 163 3
- margin 16.8 16.0
% %
First Quarter 2021 -- Progression towards mid-term targets
Muttenz, April 29, 2021 - Clariant, a focused, sustainable, and
innovative specialty chemical company, today announced first quarter
2021 continuing operations sales of CHF 1.002 billion, compared to CHF
1.019 billion in the first quarter of 2020. This corresponds to a 2 %
increase in local currency, whereas depreciating currencies led to a 2 %
decrease in Swiss francs. The local currency expansion was driven by
positive pricing.
On a regional basis, sales in Europe increased by 17 % in local currency
due in part to the weather-related improvement in the Aviation business.
Sales in Asia also grew by 9 %, driven by the economic recovery and the
undemanding comparison base in China in the first quarter of 2020. This
improvement was followed closely by Latin America, where sales rose by 4
%. Sales in the Middle East & Africa declined by 9 %, while North
America was 27 % lower primarily driven by the continued challenging
environment in Oil Services and the business disruptions in Texas due to
the winter storms.
The Care Chemicals Business Area increased sales by 7 % in local
currency due to improvements in both Consumer Care as well as Industrial
Applications in the first quarter of 2021. Catalysis sales rose by a
notable 10 % in local currency primarily due to the strong sales
development in Petrochemicals. Natural Resources sales declined by 6 %
in local currency due to the particularly challenging comparison base in
the first quarter of 2020 as well as the continued weakness in the Oil
and Refinery businesses.
The continuing operations EBITDA rose by 4 % in Swiss francs to CHF 164
million, positively influenced by the sales expansion in the first
quarter of 2021 and the efficiency program-driven cost savings in the
amount of CHF 6 million, which generated improvements in each of the
three Business Areas. As a consequence, the EBITDA margin improved
significantly to 16.4 % versus 15.4 % in the same period of the previous
year.
Discontinued operations
For the first quarter of 2021, on a like-for-like basis, sales in
discontinued operations (Pigments) increased by 4 % in local currency
and remained unchanged in Swiss francs.
The EBITDA decreased in absolute value year-on-year due to the
divestment of the Masterbatches business. The profitability of the
underlying Pigments businesses was positively impacted by the higher
sales as well as the execution of the efficiency program.
A Clariant subsidiary in the United States has been named along with
many other defendants in lawsuits involving per- and polyfluoroalkyl
substances (PFAS). Clariant is monitoring the development of these cases,
which relate to the respective business divested in 2013, and is
defending all litigation matters related to PFAS. As of this point in
time, Clariant cannot assess if these litigations will have a material
impact on Clariant's financial results.
Outlook -- Focused portfolio to achieve above-market growth, higher
profitability, and stronger cash generation in the mid-term
Clariant is a focused, sustainable, and innovative specialty chemical
company that aims to grow above the market to achieve higher
profitability through sustainability and innovation. The Group is
significantly reshaping its portfolio through the divestment of
Healthcare Packaging in 2019, the sale of Masterbatches in 2020, and the
planned divestment of Pigments.
For the second quarter of 2021, Clariant expects moderate growth in
local currency versus the prior year among all three Business Areas
driven by the recovery of Industrial Applications in Care Chemicals,
demand for Petrochemicals in Catalysis, and continued growth in
Additives and Functional Minerals in Natural Resources. Clariant aims to
defend its first quarter 2021 margins in the second quarter of 2021 via
cost discipline and pricing actions to overcome the rise in raw material,
and logistics cost. Looking at the full year 2021, Clariant expects to
achieve moderate local currency sales growth in continuing operations
and a step up in EBITDA margin to slightly above pre-COVID-19 pandemic
levels on the back of the growth of its specialty portfolio and the
positive impact of the performance programs. This is based on an
assumption of a continued economic recovery, while uncertainty remains
high.
In the mid-term, Clariant expects its continuing businesses to achieve
above-market growth, higher profitability, and stronger cash generation
based on the focused three pillars and high value specialty portfolio.
CORPORATE MEDIA RELATIONS INVESTOR RELATIONS
Jochen Dubiel andreas schwarzwälder
Phone +41 61 469 63 63 Phone +41 61 469 63 73
mailto:jochen.dubiel@clariant.com andreas.schwarzwaelder@clariant.com
jochen.dubiel@clariant.com
------------------------------------------------------------------
Claudia Kamensky Maria Ivek
Phone +41 61 469 63 63 Phone +41 61 469 63 73
claudia.kamensky@clariant.com mailto:maria.ivek@clariant.com
maria.ivek@clariant.com
------------------------------------
Thijs Bouwens Alexander Kamb
Phone +41 61 469 63 63 Phone +41 61 469 63 73
thijs.bouwens@clariant.com alexander.kamb@clariant.com
Follow us on https://twitter.com/clariant
Twitter, https://www.facebook.com/pages/Clariant/146077545551792
Facebook, https://www.linkedin.com/company/clariant
LinkedIn, https://www.instagram.com/clariant_international/
Instagram.
------------------------------------------------------------------
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.
http://www.clariant.com www.clariant.com
Clariant is a focused and innovative specialty chemical company
based in Muttenz, near Basel/Switzerland. On 31 December
2020, the company employed a total workforce of 13 235. In
the financial year 2020, Clariant recorded sales of CHF 3.860 (MORE TO FOLLOW) Dow Jones Newswires
April 29, 2021 01:00 ET (05:00 GMT)
