Clariant reports first half year results

Source: jurgenfr – stock.adobe.com

Clariant has announced first half year 2020 continuing operations sales of CHF 1.945 billion, compared to CHF 2.229 billion in the first half year 2019. This corresponds to a decrease of 5 % in local currency due to lower demand and 13 % in Swiss francs, attributable to unfavorable currency developments.

The Group was confronted by a significantly lower demand environment in several segments in the first half year 2020 as a result of the COVID-19 pandemic. Therefore, these results are noteworthy and underpin the fact that measures to minimise the impact of this pandemic are fully in place based on a strong balance sheet and liquidity position. Clariant continues to ensure employee safety first while concurrently running business continuity programs and implementing cash as well as cost measures.

Middle East & Africa and Asia remain resilient

In the first half year, the Middle East & Africa as well as Asia remained resilient, with China and Southeast Asia demonstrating solid growth. Sales in Latin America increased in local currency, while Europe and North America weakened more significantly due to demand declines across all business areas.

In the first half 2020, care chemicals sales declined by 6 % in local currency due to weather-related weak aviation demand in the first quarter, which could not be compensated for by the strong expansion in consumer care in the second quarter. The catalysis business area’s top line declined by 4 % in local currency amid the temporarily muted demand environment in the chemical industry, whereas the second quarter improved over the first. Natural resources was impacted by the weakening end-market demand and pressure on volumes in oil and mining services in the second quarter in particular. This resulted in a sales decline of 5 % in local currency in the first half of 2020.

Efficiency program will be resumed

As a consequence of this economic development, Clariant will resume its efficiency program, originally announced in February 2020. As previously disclosed, these measures will lead to a workforce reduction of approximately 600 positions and a cost base reduction in excess of CHF 50 million for the continuing business over the next two years.

 

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