Clariant AG — Earnings Release 2002

Feb 25, 2003

News Details

Ad-hoc | 25 February 2003 07:34

Clariant AG part 2

Clariant AG: Part 2 from 2 Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Part 2 from 2 Your contacts at Clariant Media Relations Rainer Weihofen Tel. +41 61 469 67 42 Patrick Kaiser Tel: +41 61 496 67 40 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 end of ad-hoc-announcement (c)DGAP 25.02.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Pigments & Additives The Pigments & Additives Division raised its sales in local currencies by 4.5% (-3.1% in CHF). EBITA came to CHF 210 million, equating to a 11.6% margin. The Division lifted its sales substantially despite the persistently weak economy and even managed to increase its market share. Only the Ink Pigments Business Unit saw sales decline because print output fell off sharply in the period under review. In contrast, the Pigments Business Unit raised sales, particularly in the plastics, coatings and non-impact printing segments. Demand for special additives was buoyant in 2002, giving the Additives Business Unit substantial sales growth. Masterbatches The Masterbatches Division raised its sales in local currencies by 5.4% (-1.1% in CHF). EBITA came to CHF 101 million, equating to a 9.8% margin. All four regional Business Units raised their sales in the past fiscal year. Growth in Latin America, Asia-Pacific and the “emerging markets” like the Middle East and eastern Europe was particularly strong. This offset the decline in sales in the Synthetic Fibers segment, where performance was especially weak in the USA and Benelux countries. Restructuring measures that were taken in Germany and the USA in 2001, along with strict cost management and favorable price trends for raw materials, improved the bottom line. Functional Chemicals The Functional Chemicals Division raised its sales in local currencies by 5.8% (-2.4% in CHF). EBITA came to CHF 137 million, equating to a 6.5% margin. Unfortunately, the late commissioning of a plant for bleach activators put a dent in the result. Apart from that, capacity utilization was good and the cost structure optimized in the Detergents Business Unit. Sales of performance chemicals rose substantially in local currencies despite various adverse factors. The mild winter at the beginning of the period under review dragged down sales of deicing agents, while the general strike in Venezuela at year-end caused production losses. In the Process Chemicals Unit, plants were running at good capacity throughout the year. In particular, products for oil exploration and extraction did well. The Cellulose Ethers Business Unit raised its sales. The construction industry continued to contract in central Europe, though this was more than offset by growing demand from southern and eastern Europe, the USA and Asia. The cost structure for biocides was significantly improved. Life Science & Electronic Chemicals The Life Science & Electronic Chemicals Division raised its sales in local currencies by 6.6% (-0.4% in CHF). EBITA came to CHF 32 million, equating to a 2.0% margin. The Electronic Materials Business Unit grew considerably faster than the market. The traditional semiconductor market still showed no significant growth, though this was more than offset by the positive trend for flat screens, which are being ever more widely used. The Specialty Fine Chemicals Unit remained profitable despite fiercer competition and successfully defended its leading positions for its important products. The market situation for the Pharmaceuticals Business Unit did not improve in fiscal 2002. Demand for custom syntheses declined, in particular because there were fewer approvals and a number of clinical trials failed. The entire sector was therefore plagued by overcapacity for both active substances and precursors. This had a particularly adverse impact on the Custom Synthesis Business Unit. The weak US dollar was a further negative factor, since a large proportion of the products are exported to the dollar zone. Outlook The company expects the overall economic situation to remain equally difficult in 2003. Against this background, Clariant expects internal growth, as before, to exceed growth in the market. At the center of Clariant’s activities will be the implementation of strategic measures for portfolio development and the creation of service centers. Cash flow management and a further reduction in net debt to well under CHF 2.5 billion will continue to be of paramount importance. The existing programs to reduce costs, increase efficiency and lower net current assets will therefore be pursued with undiminished intensity. Clariant – Exactly your chemistry. Based at Muttenz near Basel, Switzerland, Clariant is a global leader in the field of fine and specialty chemicals. Some 28 000 employees in more than 100 group companies on five continents generate annual sales of over CHF 9 billion. Clariant is divided into five Divisions: Textile, Leather & Paper Chemicals, Pigments & Additives, Masterbatches, Functional Chemicals, Life Science & Electronic Chemicals. The Divisions have operational autonomy within the overall group strategy, and are entirely responsible for their own business success. Clariant’s innovative products play a decisive role in the customers’ manufacturing and treatment processes or add value to their end-products. The company’s success is based on the know-how of its staff, and on their ability to identify new customer needs at an early stage and to work together with customers to find innovative, efficient solutions. Clariant is committed to sustainable growth springing from its own innovative strength. Our objective is to achieve 30% of sales with products and services that are no more than five years old. http://www.clariant.com ——————————————————————————– WKN: 895929; ISIN: CH0012142631; Index: SMI Listed: Amtlicher Markt in Frankfurt (General Standard); Freiverkehr in Berlin, Düsseldorf, München und Stuttgart; Schweizer Börse (Hauptsegment); SEAQ-Handel in London 250734 Feb 03