Swiss specialty chemicals manufacturer Clariant has posted improved sales for the first quarter of 2007. The company reported growth of 6% in local currency terms and 5% in Swiss franc terms to reach CHF2.156 billion ($1.77 billion) from CHF2.048 billion in the comparable prior-year period, driven by higher selling prices and acquisitions made in 2006.

Sales prices rose 1% on average with strong increases in Functional Chemicals and Masterbatches, whilst gross margin remained stable at 31.1% despite a 3% increase in raw material prices during the period. Operating income before exceptionals declined to CHF152 million from CHF160 million, impacted by increased freight costs, an 11% rise in energy costs, and unfavourable currency movements.

The Textile, Leather & Paper Chemicals Division posted organic growth of 5% in the three-month period as prices remained stable over the period. However, despite good demand and firm price increases, the Leather division continued to be impacted by a challenging business environment.

On a regional basis, Asia posted the strongest organic growth of 11%, driven by a 27% increase from China. India and Pakistan also contributed to the strong growth rate. Europe achieved 3% growth in local currency terms. The Americas meanwhile, achieved 3% growth with a solid contribution from Latin America offsetting a 2% drop from the United States.