Clariant AG — Earnings Release 2003

May 7, 2003

News Details

Ad-hoc | 7 May 2003 07:31

Clariant AG part 2

Solid sales growth in a difficult market environment – Part 2 of 2 Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Solid sales growth in a difficult market environment – Part 2 of 2 In the first quarter of 2003 Clariant reported sales growth of CHF 4% in local currencies. All divisions except for LSE contributed to this growth with higher volumes and an optimized product mix, while prices were kept stable despite the tough competitive environment. Sales in Swiss francs fell by 8% to CHF 2 106 mn owing to the strong appreciation of the Swiss franc against most of the major currencies. Gross profit increased slightly to CHF 712 mn (+1%). The decline in operating profit (EBIT) to CHF 113 mn is due in large measure to the provision of about CHF 38 mn made by the FUN division owing to the further delay in starting up production at a new plant in the U.S. Furthermore, the weak operating result at LSE had an adverse impact on Group EBIT. High tax rates and mostly non-cash currency losses were negative factors impacting the financial result in the first quarter. Net income came to CHF 2 mn, though it would have been CHF 40 mn without the special effect mentioned above. Clariant CEO Roland Lösser said: “Thanks to our solid marketing efforts we were able to achieve a lasting increase in sales to the local markets despite tough market conditions. We grew faster than the market in many of our businesses and were able to keep our prices stable. Unfortunately the operating performance of our Group was negatively impacted by special effects.” Debt increased following seasonal patterns, coming to CHF 3 665 mn as per March 31 compared with CHF 3 476 mn at the end of 2002. By contrast, equity increased slightly to CHF 947 mn compared with CHF 914 mn at the end of last year. Despite the difficult environment, Clariant is maintaining expenditures for research and development – the engine driving the company’s innovativeness and sustainable growth – at the high level of 3.7% of sales. With the economic situation remaining unstable, it is not possible at the present time to make reliable statements for fiscal 2003. For the second quarter, Clariant expects its operating performance to be on a par with that in the first quarter, if the special effect is factored out. The company reiterates its goal to reduce net debt to below CHF 2.5 billion at year-end assuming successful completion of disposal projects. You can find detailed information on the quarterly result and the divisions, including tables, on the Internet at http://www.clariant.com/investors. Calendar of events: August 5, 2003: Results 2nd quarter Details of Clariant’s strategy will be communicated to the market by the new CEO, Roland Lösser, in a conference November 4, 2003: 9-month results for 2003 end of ad-hoc-announcement (c)DGAP 07.05.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Your contacts at Clariant Media Relations Christoph Hafner Tel. +41 61 469 67 46 Rainer Weihofen Tel. +41 61 469 67 42 Fax +41 61 469 69 99 Investor Relations Tel. +41 61 469 67 48 Fax +41 61 469 67 67 Iris Welten Tel. +41 61 469 67 47 Holger Schimanke Tel. +41 61 469 67 45 Daniel Leuthardt Tel. +41 61 469 67 49 ——————————————————————————– WKN: 895929; ISIN: CH0012142631; Index: SMI Listed: Amtlicher Markt in Frankfurt (General Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, München und Stuttgart; Schweizer Börse (Hauptsegment); SEAQ- Handel in London 070731 Mai 03