Clariant Profit Weakens with World Economy
Swiss speciality chemicals maker Clariant reported a larger-than-expected fall in net income for the third quarter, hit by fresh deterioration in the global economy.
Clariant, whose products put colour into plastics, said earnings fell to 49 million Swiss francs from 81 million a year ago and against an average analysts forecast of 53.6 million. .
The chemical industry's dependence on highly cyclical machinery makers, car manufacturers and builders makes it especially vulnerable to economic downturns.
Clariant said that during the third quarter growth in the rest of the world, including in Asia, was unable to offset slackness in Europe where the euro zone debt crisis weighed.
Chief Executive Hariolf Kottman said he believed the company would overcome the current economic trough through growth in key business areas, a disciplined approach to pricing and progress on integrating its purchase of Sued-Chemie.
"Although the short-term economic challenges are expected to persist, Clariant's mid-term guidance until 2015 remains intact," he said.
For full-year 2012, Clariant expects flat sales growth in local currencies.
It also expects raw material costs to be unchanged this year versus 2011, while exchange rates should remain at the levels of the start of the year.
