Clariant Profit Rises as Restructuring Bears Fruit
Swiss speciality chemicals maker Clariant posted a better than expected second-quarter profit as it reaped gains from a restructuring and said it was slowly moving towards its short and mid-term targets.
Net profit rose to 79 million Swiss francs ($84.8 million) from 68 million francs a year earlier on the back of 1.54 billion in revenues, up 2% in local currencies.
Analysts on average had forecast net profit of 68.3 million francs and sales of 1.55 billion francs in a Reuters poll.
The company sold three of its lower margin cyclical units late last year and reorganized itself into four business units - care chemicals, plastics and coatings, natural resources and catalysis and energy.
Chief Executive Hariolf Kottmann said the shine was coming off emerging markets, but that the company continued to see a fairly stable economic environment, albeit at a low level.
Last week, Germany's BASF called its 2013 profit goal into question as shrinking European markets and slower growth in China weighed on its second-quarter profit.
Clariant confirmed its 2015 guidance for a pretax core profit margin before exceptional items of above 17% and a return on invested capital above the peer group average.
Last month, Clariant said products currently under development could net sales of over 1 billion Swiss francs by 2017.
