International. Clariant announced sales from continuing operations of more than $2,249 million (2,229 million Swiss francs) during the first half of this year, representing organic growth of 4% in local currency, punctuated by higher volumes as well as sales prices.
During the first half, almost all regions contributed to the continued growth of sales of local currency operations. Sales in Latin America grew by 10%, followed by the Middle East and Africa by 8%. In Asia and Europe, sales development was 5% and 4%, respectively. However, China was down 9%, while North America reported a slight contraction of 3%.
However, EBITDA after exceptional items was adversely affected by the one-time provision of USD 233 million (CHF 231 million), as a result of further developments in an ongoing investigation of competition law by the European Commission in the ethylene procurement market. Therefore, EBITDA decreased significantly to USD 103 million (CHF 102 million) compared to USD 344 million (CHF 341 million) in the previous year.
Cash flow for the company increased 11% to USD 114 million (CHF 113 million), driven by lower taxes and favorable inventory developments.
On the other hand, Clariant will continue to focus on its high-value specialty businesses, as announced in September 2018, with the divestment of the Pigments business and has decided to divest the entire Masterbatches business as well, including standard and high-value Masterbatches. These divestments are expected to conclude unchanged by the end of 2020.
Proceeds from these operations will be used to invest in innovations and technological applications within the core Business Areas, to strengthen Clariant's balance sheet and return capital to shareholders.
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