Clariant posts Q1 beat, sees Q2 sales dipping vs Jan-March

ZURICH (Reuters) - Clariant's first-quarter sales from continuing operations rose 30% in local currencies and 26% in Swiss francs to 1.26 billion Swiss francs ($1.26 billion), with pricing contributing 16% to growth, the Swiss speciality chemicals group said on Wednesday.

Core profit from continuing operations rose 27% to a better-than-expected 220 million francs, while its margin increased to 17.4% from 17.3 % in the first quarter of 2021, the company said.

Analysts had expected first-quarter sales of 1.18 billion Swiss francs and EBITDA of 209 million francs before exceptional items, according to a consensus https://www.clariant.com/en/Investors/Share-and-Bonds/Analyst-Consensus compiled by the company.

In the second quarter, Clariant expects to generate strong year-on-year sales growth in local currencies, but said sales would likely decline moderately versus the first quarter due to seasonal factors and demand normalization in Care Chemicals and Natural Resources.

"Clariant expects to improve on its restated year-on-year margin levels in the second quarter of 2022," the company said.

"Sequentially, the Group expects to be broadly in line with its first quarter 2022 margin level, especially via operating leverage from growth, continuing pricing actions, and cost discipline to counter continued inflation in raw materials, logistics, labour, and energy cost," it added.

Clariant reiterated its outlook from last month that it expected strong growth in local currency in 2022, particularly in the first half.

Clariant in April concluded its probe of allegations that some staff manipulated accounts in 2020 and 2021 to help meet financial targets, finding no impact on sales and cash previously reported.

($1 = 1.0001 Swiss francs)

(Reporting by Michael Shields, editing by John Revill)