CLARIANT
Masterbatches especially hard hit by demand slump / Job cuts and cash generation are 2009 focus
Swiss speciality chemicals group Clariant (Muttenz; www.clariant.com) was hard hit by the disastrous downturn in key customer industries in the fourth quarter of 2008. The masterbatch division in particular was affected by declining demand in the automotive and housing sectors. As the group tries to find its way out of the crisis, it has indicated that more jobs will be lost than previously planned – see Plasteurope.com of 29.01.2009. Altogether 1,350 jobs are to be shed during 2009, including 850 in Europe. In the UK, 300 positions will be eliminated, in Germany 200 and in Switzerland 150.
Presenting results for the fourth quarter and full year 2008, Clariant’s new CEO, Harriolf Kottmann, said that all divisions were affected by the downturn that accelerated in the fourth quarter and led the group to post a full-year impairment-related net loss of CHF 37m (about EUR 25m) on sales of CHF 8.1 bn – a 5% decrease against the 2007 figure of CHF 8.5 bn. Group-wide full year figures were padded by progress made earlier in the year.
In the divisions, sales of Pigments and Additives (P&A) decreased to CHF 1.95 bn from CHF 2.08 bn a year earlier; however, EBITDA before restructuring and disposals improved to CHF 198m from CHF 77m. The EBITDA margin increased to 15% from 13.4%. Masterbatch division sales slipped back from CHF 1.38 bn in 2007 to CHF 1.28 bn in 2008, but divisional EBITDA before restructuring and disposals fell to CHF 11m from CHF 136m. The EBITDA margin eroded to 9.5% from 11.1% a year earlier.
Kottmann said he sees “currently no evidence that the global economy will recover soon from the depressed levels seen in recent months,” with some segments of the group’s portfolio reacting to the demand slump better than others. To deal with the “challenging environment,” cash generation through significantly decreasing net working capital and improving spending discipline will be the priority for 2009. A business-wide review of operations and a restructuring plan are to be presented during the first quarter.
e-Service:
Clariant annual report 2008 (preliminary version) as a PDF document (2,982 KB)
Presenting results for the fourth quarter and full year 2008, Clariant’s new CEO, Harriolf Kottmann, said that all divisions were affected by the downturn that accelerated in the fourth quarter and led the group to post a full-year impairment-related net loss of CHF 37m (about EUR 25m) on sales of CHF 8.1 bn – a 5% decrease against the 2007 figure of CHF 8.5 bn. Group-wide full year figures were padded by progress made earlier in the year.
In the divisions, sales of Pigments and Additives (P&A) decreased to CHF 1.95 bn from CHF 2.08 bn a year earlier; however, EBITDA before restructuring and disposals improved to CHF 198m from CHF 77m. The EBITDA margin increased to 15% from 13.4%. Masterbatch division sales slipped back from CHF 1.38 bn in 2007 to CHF 1.28 bn in 2008, but divisional EBITDA before restructuring and disposals fell to CHF 11m from CHF 136m. The EBITDA margin eroded to 9.5% from 11.1% a year earlier.
Kottmann said he sees “currently no evidence that the global economy will recover soon from the depressed levels seen in recent months,” with some segments of the group’s portfolio reacting to the demand slump better than others. To deal with the “challenging environment,” cash generation through significantly decreasing net working capital and improving spending discipline will be the priority for 2009. A business-wide review of operations and a restructuring plan are to be presented during the first quarter.
e-Service:
Clariant annual report 2008 (preliminary version) as a PDF document (2,982 KB)
26.02.2009 Plasteurope.com [212866]
Published on 26.02.2009
German version of this article...