Clariant posts improved results but leather demand falls
Despite facing increased pressure from rising raw material and energy prices, Swiss leather chemicals manufacturer Clariant achieved a solid performance in 2007, as a result of strong growth in Asia and Latin America, cost cutting measures and increasing prices by more than 1%. However, the company’s Leather Business failed to reflect the upward trend, as sales declined due to falling demand and overcapacity.
Overall, sales improved 4% in local currencies (5% in Swiss Francs) to reach CHF8.533 billion ($7.72 billion), up from CHF8.1 billion ($7.33 billion) in the previous year, despite weaker sales in the second half.
Chief executive Jan Secher, commented: “We expect our continuing initiatives in increasing prices and striving for cost leadership to deliver improved profitability in 2008. Moving ahead, we will focus on businesses where we can optimise value through leveraging strong market positions and selectively participate in the consolidation of these market segments. This will result in a period of active portfolio re-shaping.”
