Crop Solutions Help Clariant Grow in a Softening Economic Environment

Posted by Dan Jacobs|30 October 2014

Clariant’s 8% growth in the third quarter of 2014 was driven largely by the company’s Crop Solutions segment (part of the Consumer Care division), the company announced. Consumer Care and Industrial Applications saw double-digit growth.

“In the first nine months, Clariant’s well-balanced, growth-oriented portfolio achieved
above-market growth in a softening global economic environment,” said CEO Hariolf
Kottmann. “Volumes were strong and prices firm despite uneven developments in
industries, end-markets and regions. While we expect those challenges to persist in the
fourth quarter, we are confident of reaching our targets for 2014, including substantial
cash flow generation in the remainder of the year.”

Clariant reported a sales increase of 4% increase to $1.59 billion (CHF 1.51 billion) from $1.52 billion (CHF 1.44 billion) in the third quarter of 2013, though an unfavorable currency effect did impact the operation. EBITDA before exceptional items up 8% in local currencies, margin at 14.0% compared to 14.1%

Emerging markets were particularly good for Clariant achieving double-digit local currency sales. That growth was led by Latin America, with a 23% sales increase, and Asia/Pacific with 13%. In Latin America, Brazil reported single-digit growth while sales in most of the other economies in the region grew double-digit. In Asia/Pacific strong sales growth was achieved in China with 12% and in India with 38% higher sales. In the mature markets, North America reached 3% higher sales, outpacing Europe Middle East & Africa (EMEA), which grew 2%.