Swiss specialty chemicals company Clariant has posted a rise in sales for the full year 2006, with annual organic sales growth of 7% in Swiss francs and 5% in local currency terms. Sales reached CHF8.1 billion ($6.6 billion) compared with CHF7.728 billion in 2005. However, net income fell to CHF131 million from CHF262 million, mainly due to a goodwill impairment charge of CHF100 million in the leather business. Including discontinued operations, the company reported a net loss of CHF78 million compared with CHF192 million the previous year.

Sales in the fourth quarter rose 3% to CHF2.01 billion from 1.958 billion a year earlier whilst net income totalled CHF23 million, up from CHF16 million in the comparable quarter in 2005.

The Textile, Leather & Paper Chemicals division posted organic growth of 3% for 2006. After a weak 2005, Leather posted an improved performance in 2006, with increased sales in South America and Asia.

Asia led Clariant’s growth in 2006 with organic sales rising 7% to CHF1.87 billion. China remains a key growth market with sales increasing by 20% whilst India and Turkey also contributed double-digit growth rates. Year-on-year organic sales in Europe grew by 5% (6% in Swiss francs) to CHF3.94 billion. Sales in Germany, which generates a significant proportion of European sales for the company, grew above the regional average at 7%, totalling CHF1.17 billion whilst growth in Eastern Europe was also above average for the region. The Americas achieved solid organic sales growth of 4% to reach CHF2.29 billion, with a strong contribution from Latin America where sale rose 5%. The US market recorded growth of 3%, which was below the regional average, taking sales to CHF1.03 billion.