Clariant AG — Earnings Release 2002

Feb 11, 2003

News Details

Ad-hoc | 11 February 2003 07:32

Clariant AG english

Clariant improves operating performance Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Clariant improves operating performance – takes a net loss due to extraordinary goodwill amortization in Life Sciences unit – Sales up 4.7% in local currencies – Operating margin (EBITA) lifted from 6.4% to 7.4% – Free cash flow CHF 788 million – Net financial debt reduced by CHF 806 million – Net loss of CHF 648 million Muttenz/Switzerland, February 11, 2003 2002 was marked by difficult business conditions. Despite the environment, Clariant generated satisfactory sales growth of 4.7% in local currency terms (-3.3% in Swiss francs). All divisions contributed to the sales growth. Growth in the Life Sciences unit did not come up to our expectations, and the improvements achieved were less than expected. Given the current market situation, recovery is likely to continue to be slow in the medium term. Meeting yesterday to approve the consolidated accounts, the Board of Directors therefore decided that it would write off the entire goodwill of CHF 790 million remaining in this Life Science unit from the acquisition of BTP and make a value adjustment on property, plant & equipment amounting to CHF 100 million. The company again substantially reduced its net financial debt to below CHF 3.5 billion. There were a number of contributory factors: a high operating cash flow, a reduction in current assets, lower capital spending, proceeds from disposals and the strong Swiss franc. The program to increase efficiency made a positive contribution to this result. The Board of Directors will propose to the Annual General Meeting to be held in Basel on April 11, 2003 that no dividend be distributed. Key financial ratios in CHF millions 2002 2001 2001, Change in % reported pro forma* compared with pro forma CHF LC Sales 9330 9871 9652 -3.3 +4.7 Gross profit 3055 3084 2997 +1.9 +9.5 EBITDA 1112 1186 1139 -2.4 +6.1 EBITA** 690 631 597 +15.6 +27.6 Net income (loss) -648 -1242 – – – Free cash flow 788 955 – – – Capital expenditure 339 505 – – – As per Dec. 2002 Dec. 2001 Net debt 3476 4282 * Various special effects from 2001 were included to ensure better comparability of the key ratios: disposal of the PVA/PVB business, sale of the Cassella- Offenbach plant and of the stake in Harlow Chemicals Company Ltd (UK). The data represent the result from the ongoing businesses. ** Operating result prior to special effects and goodwill amortization. The economic situation is expected to remain difficult in 2003. Cash flow management and the reduction of net debt will continue to be of utmost importance. Clariant will forge ahead with the programs to cut costs, increase efficiency and reduce current assets. Independently of these programs, the “Growth and Innovation” drive started in 2002 will be continued. Further details about the annual figures will be reported, as planned, at the Annual Media Conference to be held on February 25. end of ad-hoc-announcement (c)DGAP 11.02.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Key dates: – February 11-25, 2003 Silent period – February 25, 2003 2002 results Annual media conference/analysts’ meeting – April 11, 2003 Annual General Meeting 2003 Your contact points at Clariant Media Relations Rainer Weihofen Tel. +41 61 469 67 42 Patrick Kaiser Tel. +41 61 469 67 40 Investor Relations Iris Welten Tel. +41 61 469 67 47 Holger Schimanke Tel. +41 61 469 67 45 Daniel Leuthardt Tel. +41 61 469 67 49 Clariant – Exactly your chemistry. Clariant is a leading global fine and specialty chemicals company with about 29,000 employees and annual sales of over CHF 9 billion. The Group operates worldwide with over 100 companies on five continents. It is domiciled and headquartered in Muttenz near Basel, Switzerland. The products and services of the five divisions Textile, Leather & Paper Chemicals, Pigments & Additives, Masterbatches, Functional Chemicals and Life Science & Electronic Chemicals are based on innovative specialty chemicals. These play a key role in clients’ manufacturing processes and upgrade their end products. http://www.clariant.com ——————————————————————————– WKN: 895929; ISIN: CH0012142631; Index: SMI Listed: Amtlicher Markt in Frankfurt; Freiverkehr in Berlin, Düsseldorf, München und Stuttgart; Schweizer Börse (Hauptsegment); SEAQ-Handel in London; 110732 Feb 03