Clariant reports fall in leather chemicals sales, but says 2012 will be better
15/02/2012
However, sales in the company’s leather services business declined by 17% in local currencies and by 24% in Clariant’s home currency, Swiss francs (CHF) compared to the previous year. “Sales were negatively impacted by destocking activities and continuously high raw hide prices,” Clariant said. “Therefore, customers postponed production in anticipation of lower input costs in 2012. Demand from the luxury goods and the automotive industries remained robust. However, in the upholstery sector the trend towards using alternative materials instead of leather continued.”
Clariant said on announcing the results that it expects its leather services to see “a sequential improvement” in its results during 2012 as destocking will end. “In addition, a continuing good demand from the luxury segment and from North America is expected to support the business,” it added. “During the year, diminishing currency headwinds and stabilising raw material costs will also lead to an improvement. As a leading producer of more environmentally friendly leather chemicals, Clariant is receiving more and more requests for sustainable products from customers working for high-end sports brands. This supports the strategy of the business unit. The business will continue to focus on innovation, high-value segments, and the introduction of new services and value-added and eco-friendly products such as chromium-free tanning technology Easy WhiteTan.”
Overall, sales increased by 16% in local currencies and by 4% in CHF. Net income improved to CHF 251 million from CHF 191 million in 2010.
Clariant said it expects further sales growth in local currencies and sustained profitability in 2012 and that it expects the global economy to progressively strengthen in the course of the year.
Chief executive, Hariolf Kottmann, commented: “In 2011, we started to transform Clariant into a highly profitable specialty chemicals company, based on a strong technology base and a solid financial position. The acquisition of Süd-Chemie marked a milestone in this
process. In addition, Clariant continued to invest in its growth businesses and supported the mature businesses in improving their profitability. This is reflected in a better performance despite challenging and volatile business conditions. In 2012, we will intensify the efforts to sustainably increase the quality and performance of the portfolio.”
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