Chemicals Clariant lowers growth target after declining third quarter

SDA

29.10.2024 - 07:22

The specialty chemicals group Clariant describes the current environment as challenging. (archive picture)
The specialty chemicals group Clariant describes the current environment as challenging. (archive picture)
Keystone

Clariant also has to accept a setback in the third quarter of 2024. The Group reported a 4 percent drop in sales to 991 million Swiss francs for the months of July to September. The growth target is therefore being lowered.

In a communiqué published on Tuesday, Clariant speaks of a "persistently challenging" environment. However, the specialty chemicals group has also suffered not least from less favorable currency effects. In local currencies, sales would have fallen by only 1 percent.

The volumes sold fell by 3 percent compared to the previous year, while average sales prices remained stable. The low volumes were also reflected in profitability.

Adjusted operating profit at EBITDA level amounted to CHF 155 million, 5% less than in the same period of the previous year. The margin fell accordingly by 0.3 percentage points to 15.6 percent. Clariant does not disclose its net profit.

Forecast confirmed

As the hoped-for economic recovery has not materialized, Clariant has had to lower its forecast for the current year. The company now anticipates a decline in sales in local currencies in the low single-digit percentage range.

Previously, the Muttenz-based company had forecast that sales would remain stable or even increase slightly. Meanwhile, Clariant is sticking to its forecast of an EBITDA margin of around 16 percent.

The targets for 2025 were also confirmed. Clariant is then aiming for an EBITDA margin of 17 to 18 percent. However, the company is relying on the assumption that demand in the end markets will improve by 3 to 5 percent.

SDA