International. Clariant recently announced sales in Swiss francs (CHF) of $6.377 billion in the year 2017 compared to CHF 5.847 billion in 2016. This corresponds to 9% growth in local currency driven by double-digit earnings at Catalysis and Natural Resources. Organic growth was 6%, driven by the highest volume of contributions from all business areas.
The company said that for the full year, local currency sales growth was strongest in Asia, the Middle East, Africa and Europe. Sales in Asia increased by 12%, driven by notable sales development in China, Southeast Asia and Japan. Sales growth in the Middle East and Africa was 15% and in Europe 7%. Sales in North America also increased by 11% driven primarily by acquisitions. However, sales in Latin America were stable, showing signs of improvement in the second half of the year in an ongoing challenging macroeconomic environment.
The best sales performance throughout the year was the result of growth in all business areas. Both Care Chemicals and Catalysis reported particularly strong expansion. Sales at Care Chemicals increased 8% in local currency, backed by vigorous Consumer Care and Industrial Applications companies. Catalysis sales improved by an excellent 13% with positive contributions from all business lines.
Natural Resources sales accelerated by 14%, primarily thanks to the acquisitions of Kel-Tech and X-Chem in North America. Organic sales in Natural Resources grew by 3%, driven by solid growth in Functional Minerals and the initial recovery of the Petroleum and Mining Services business. At Plastics & Coatings, sales increased by 5% with sales expansion in all three Business Units and a particular strength in China.
Clariant expects the good economic environment in mature markets, which represent a high comparable base, to continue. Emerging markets are expected to provide support with Latin America showing signs of recovery.
For 2018, Clariant is confident of being able to achieve growth in local currency, as well as a progression in operating cash flow, absolute EBITDA and EBITDA margin before exceptional items.
Clariant confirms its medium-term goal of achieving a position at the top level of the specialty chemicals industry. This corresponds to an EBITDA margin before exceptional items in the range of 16% to 19% and a return on invested capital (ROIC) above the peer group average.
