Clariant increased sales, profitability and operating cash flow in 2018
Canadian PlasticsEconomy Materials
Clariant's plastics & coatings division increased sales by one per cent, with particularly strong regional expansion in Latin America.
Specialty chemical maker Clariant announced full year 2018 sales of CHF 6.6 billion (Cdn$8.7 billion) compared to CHF 6.3 billion in 2017, which represents a 5% growth driven by higher sales in all business areas.
In a statement, Swiss-based Clariant – which reports in Swiss francs (CHF) – said that sales in Latin America grew the strongest, by 12%. “Sales in Asia increased by 7%, bolstered by a particularly positive development in China and India,” Clariant said. “In North America, sales rose by 5%. Both Europe and the Middle East and Africa increased sales by 2%. The absolute profitability improvement was attributable to the positive contributions from Care Chemicals, and Catalysis. In Plastics & Coatings, sales rose by 1% in local currency with particularly strong regional expansion in Latin America.”
In the fourth quarter of 2018, meanwhile, Clariant’s sales rose by 3% in local currency to CHF 1.629 billion (Cdn$2.1 billion). “This represents a decrease of 3% in Swiss francs year-on-year due to unfavorable currency fluctuations. The sales growth in local currency was mainly driven by Catalysis and Natural Resources,” Clariant said. “Sales in Plastics & Coatings were 3% lower in local currency due to the softening demand in Asia and Europe in particular.”
Almost all regions contributed to Clariant’s Q4 2018 growth. “In the Middle East & Africa, sales in local currency grew by a robust 15% driven mainly by Catalysis,” Clariant said. “Sales in Latin America increased by 9% in local currency supported by Oil & Mining Services, in North America by a solid 3% and in Asia by 2 % with a slowing in China. Only sales in Europe had a negative growth of 2% largely due to the particularly challenging comparison base.”