Strong quarter for Clariant
29/07/2010
Now, on the back of what it refers to as “a broad economic recovery”, it has reported sales growth across all businesses and regions.
The leather business unit was among those that benefited most from the improved economic environment and grew above group average, the company said.
Demand in Europe developed better than expected with a 22% sales growth. Demand in the regions Asia, Latin and North America increased too. Gross margins increased from 28.9% from 24.8% the previous year.
The company explained that it had increased sales prices by 1% in response to a 4% increase in raw material costs.
As part of ongoing efforts to improve the structure of its production facilities, the company has decided to cease production of pigments in Tianjin, China, and Onsan, South Korea, and invest in a new ethoxylation plant in Dayabay, China. The new site will come on stream in early 2011.
The company said it expects a weaker second half of this year as the global economy softens and raw material costs rise further.
It said it would continue to focus on generating cash, decreasing costs and reducing complexity, which will result in an additional reduction of job positions. The ongoing restructuring programme will be finalised by the end of this year and the company will be “managed for profitable growth” as of 2011.
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