After a loss in the third quarter of 2006, Swiss speciality chemicals producer Clariant (Muttenz / Switzerland; www.clariant.com) has announced plans to cut 2,200 jobs, reduce worldwide sites by 10% and the number of products by 25%. The latest turnaround scheme calls for spending of CHF 500m (around EUR 314m) to lift the return on invested capital from 8% currently to 10% by the end of 2009. CEO Jan Secher said a review of operations revealed that "the company is headed in the right direction in most areas," but needs more effort to achieve "world class performance."

Clariant, which claims to be the world´s largest supplier of colour masterbatches, has not provided details on what the plans will mean for individual businesses. Secher said "initiatives will be launched across the group" to expand in fast-growing markets such as China and India. From January to September 2006, group sales denominated in Swiss currency rose 5.5% to CHF 6.1 bn (EUR 3.8 bn) as EBITDA pre-exceptionals climbed nearly 11% to CHF 653m. However, the third quarter result was a negative CHF 14m.

Masterbatches posted sales growth of 10.6% to CHF 958m in the first three quarters, driven by brisk business in packaging and consumer goods, as well as higher prices. The planned acquisition of Ciba Specialty Chemicals´ masterbatch portfolio is expected to provide a further boost (see Plasteurope.com Web of 05.10.2006). The division´s EBITDA before exceptionals was 33% higher at CHF 120m. Sales growth in Pigments and Additives was 6.4% to CHF 1.5 bn, with margins buoyed by high performance applications and specialities as well as halogen-free flame retardants. EBITDA pre-exceptionals was up 24% to CHF 251m.

e-Service:
Clariant interim report for the first nine months of 2006 as PDF document (78 KB)