Leather revenues decline at Clariant
Swiss chemicals company Clariant has posted improved sales for the first nine months of 2007, however, continued high raw material and energy costs weighed heavily on revenues, particularly at its leather chemicals division.
Overall sales improved 4% in local currencies and 6% in Swiss francs to reach CHF6.447 billion ($5.66 billion), up from CHF 6.090 billion a year earlier, but, due to a 4% rise in the cost of raw materials and energy and an unfavourable currency exchange, the gross profit margin actually declined to 29.6% from 31.2% in the same period of 2006.
In the third quarter sales at the firm’s Textile, Leather & Paper Chemicals division declined 2% year-on-year in local currency terms, due largely to weakness in the market for leather chemicals, which was already evident in the preceding quarter.
The company recorded CHF120 million of restructuring costs in the quarter, mainly related to the planned closure of its Textile, Leather & Paper Chemicals site at Selby in the UK, which remains subject to consultation with employee representatives. In addition the company announced the closure of its Pigments & Additives site Coventry, Rhode Island and its Masterbatches site in Naucalpan, Mexico.
