Mixed results for Clariant in first half 2001
Clariant AG has said it expanded its share of the global leather chemicals market during the first six months of the year and that the integration of the BTP leather business will soon begin to pay off.
In its half-year report, released last week, the Swiss specialty chemicals group also said its range of leather chemicals is now complete and successfully positioned. Profit margins in the leather chemicals division remained static year-on-year, as a rise in demand for shoe upper leather from Asia and the continued popularity of leather as a clothing material were countered by the effects of foot and mouth disease and depressed automotive sales.
Overall, sales of the company’s textile, leather and paper chemicals division were marginally down - by 3% to SFr1.254 billion ($757 million). Synergies from the BTP takeover will begin to have a positive impact on earnings from the second half of 2001 while 2002 is expected to see further improvements, the company said.
Nevertheless, group losses came in much higher than analysts had been expecting at SFr1.3 billion ($769m) - largely on the back of a SFr1.2 billion write-down relating to the purchase of BTP group. This decision, which entailed writing off nearly half the purchase value of BTP, was due to ‘difficult conditions’ in the agrochemicals and pharmaceuticals markets, product-approvals and product recalls, Clariant said.
