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Clariant AG (CLN.SW)

Swiss - Swiss Delayed price. Currency in CHF
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19.28-0.23 (-1.20%)
At close: 5:31PM CET
Full screen
Previous close19.51
Open19.60
Bid0.00 x 0
Ask19.28 x 0
Day's range19.26 - 19.60
52-week range14.00 - 22.06
Volume746,267
Avg. volume1,109,247
Market cap6.35B
Beta (5Y monthly)1.25
PE ratio (TTM)8.42
EPS (TTM)2.29
Earnings date11 Feb 2021
Forward dividend & yield2.38 (12.22%)
Ex-dividend date06 Jul 2020
1y target est25.11
  • Globe Newswire

    Clariant delivers robust performance in 2020, successfully mitigating COVID-19 pandemic impacts

    Sales from continuing operations decreased by 5 % in local currency to CHF 3.860 billion EBITDA margin preserved at 15.0 % in a challenging environment compared to a comparable EBITDA margin of 15.7 % in 2019 Net result for the total Group at CHF 799 millionStrong cash conversion to an operating cash flow of CHF 369 millionProposed nonrecurring regular distribution of CHF 0.70 per share, taking into consideration the performance of 2019 and 2020Outlook: Q1 2021 will still be negatively impacted by the COVID-19 pandemic; focus on pandemic mitigation and transformation of portfolio to achieve above-market growth and higher profitability “In 2020, Clariant has successfully weathered the effects of the COVID-19 pandemic due to our resilient portfolio and successful execution of our performance improvement programs,” said Conrad Keijzer, CEO of Clariant. “The reshaping of our portfolio towards a higher specialty value is progressing well. We will continue to execute Clariant’s strategy to differentiate through innovation, sustainability, portfolio, growth, and performance. We are taking a step up in our commitment to sustainability by announcing our new sustainability targets.” Key Financial Data Continuing operations Fourth Quarter Full Year in CHF million 2020 2019 % CHF % LC 2020 2019 % CHF % LC Sales 1 022 1 127 -9 -2 3 860 4 399 -12 -5 EBITDA 159 208 -24 578 461 (1) 25 - margin 15.6 % 18.5 % 15.0 % 10.5 % EBITDA before exceptional items 173 216 -20 619 740 -16 - margin 16.9 % 19.2 % 16.0 % 16.8 % EBIT 298 165 (1) Net result from continuing operations 116 -34 (1) Net result (2) 799 38 (1) Operating cash flow (2) 369 509 Number of employees as of 31 December (2) 13 235 17 223 Discontinued operations (3) Sales 200 490 -59 -55 1 330 2 127 -37 -32 Net result from discontinued operations 683 72 Including a CHF 231 million provision for a competition law investigation by the European Commission; excluding provision: EBITDA after exceptional items at CHF 692 million, comparable EBITDA margin 15.7 %Total Group including discontinued operationsHealthcare Packaging divested on October 31, 2019, Masterbatches divested on July 1, 2020 Full Year 2020 – Clariant’s 2020 robust results due to its focused specialty chemicals portfolio and execution of performance programs Muttenz, February 11, 2021 – Clariant, a focused, sustainable and innovative specialty chemical company, today announced full year 2020 continuing operations sales of CHF 3.860 billion, compared to CHF 4.399 billion in 2019. This corresponds to a decrease of 5 % in local currency and 12 % in Swiss francs due to depreciating currencies versus the Swiss franc. Pricing had a positive impact on the Group. However, the modest sales increase in Business Area Catalysis could not offset the lower volumes in Care Chemicals due to diminished Aviation activities and in Natural Resources due to depressed Oil demand. In an unprecedentedly weak environment marked by COVID-19, oil oversupply and adverse currency volatility, the full year 2020 results exhibited a notable robustness. The 15.0 % EBITDA margin in full year 2020 was slightly above the nine month 2020 result of 14.8 %, as anticipated. These results therefore clearly reflect the superiority of Clariant’s specialty portfolio as well as the effectiveness of Clariant’s business continuity programs and performance measures. Amid the COVID-19 pandemic, Clariant was able to preserve business continuity through stringent safety and contingency measures, thus avoiding disruption while cooperating closely with customers and suppliers along the value chains. Clariant also ran special mitigation programs to assure strong cash flow generation via working capital reduction, non-strategic capex cuts and spend avoidance. In addition, Clariant relaunched its efficiency program in continuing operations with a reduction of approximately 600 positions to generate annual savings of CHF 50 million. In discontinued operations, the efficiency program progressed to reduce an excess of 200 positions for savings of CHF 20 million. Rightsizing measures were also initiated to reduce or transfer approximately 1,000 positions to avoid remnant cost subsequent to the conclusion of the divestments. The efficiency programs already contributed with CHF 20 million in continuing operations and CHF 8 million in discontinued operations in 2020 and are anticipated to be fully implemented by 2022. From a regional perspective, Asia remained resilient, growing sales by 4 % with notable growth in India while China increased sales by 6 % in local currencies. Latin America also increased revenues by 7 % in local currency. Sales in Europe declined by 8 %, followed by the Middle East & Africa, where sales were down 13 %. The 14 % slowdown in North America was attributable to lower demand in the Aviation business and Oil Services. Catalysis reported slight sales growth of 1 % in local currency, reflecting a sequential improvement throughout 2020 after a slow start in the first quarter. Resilient Petrochemicals sales and a significantly increased contribution from emission-control catalysts in India contributed positively. Excluding the feeble Aviation business in the first and fourth quarter, Care Chemicals sales reflected a positive development (reported -5 %). The 8 % sales decrease in Natural Resources is attributable in particular to lower volumes in oil and in the industrial applications amid softer demand during the COVID-19 pandemic. Full year 2020 continuing operations EBITDA reached CHF 578 million due to the weaker sales in COVID-19-exposed segments, but particularly the difficult environment in Aviation and Oil. This development, amplified by weakening currencies, contributed to the absolute EBITDA contraction, resulting in an EBITDA margin decline to 15.0 % from 15.7 % (reported 10.5 %) in the previous year when excluding the one-off CHF 231 million provision, which was booked in the second quarter of 2019. In Care Chemicals, profitability improved due to growth in Consumer Care in tandem with stringent margin and cost management. The EBITDA margin in Catalysis declined as a result of the less favorable product mix, particularly in the first and fourth quarter, and the efficiency program provision. Natural Resources profitability weakened as a result of the challenging environment but was close to the prior year on an underlying basis. In 2020, the net result for the total Group increased to CHF 799 million from CHF 38 million in the previous year. The gain on the disposal of the Masterbatches business of CHF 723 million as well as the partial reversal of CHF 55 million of the EU fine provision had a positive impact. The net result was negatively affected by the volume-driven weaker absolute profit, negative currency effects as well as expenses for the efficiency and rightsizing programs. The expenses of these performance improvement programs in 2020 are approximately CHF 141 million which is broken down as CHF 49 million (efficiency) in the continuing operations and CHF 92 million (incl. CHF 68 million for rightsizing and CHF 24 million for efficiency) in the discontinued operations. Operating cash flow for the Group declined to CHF 369 million from CHF 509 million in the previous year due to the payment of a fine issued by the European Commission of CHF 166 million and due to the absolute contraction from adverse currencies and demand decline. Excluding the payment of this fine, the operating cash flow for the Group rose to CHF 535 million based on a high cash conversion driven by the execution of the performance measures. Net debt for the total Group decreased to CHF 1.040 billion versus CHF 1.372 billion recorded at the end of 2019, supported by the strong operating cash flow generation as well as the remaining Masterbatches disposal proceeds post the extraordinary dividend. With the latter, Clariant is funding the European Commission fine, the restructuring program and investments in the transformation towards its mid-term targets. The Board of Directors recommends a regular distribution of CHF 0.70 per share to the Annual General Meeting based on the Group’s solid combined performance in 2019 and 2020. This proposal should not be interpreted as a recurring distribution as the proposed amount takes into consideration the Group’s performance of the past two fiscal years, the withholding of the ordinary dividend in 2020 as well as all shareholder commitments. The distribution is proposed to be made from a share capital decrease by way of a par value reduction. Fourth Quarter 2020 – Strongest quarterly results of the year 2020 In the fourth quarter of 2020, sales from continuing operations declined by 2 % in local currency and by 9 % in Swiss francs to CHF 1.022 billion. Care Chemicals and Natural Resources were negatively affected by lower volumes, which were partially mitigated by the strong growth in Catalysis. On a regional basis, the expansion in Asia was lifted by high double-digit growth in India as well as in South Korea, while revenue growth in Latin America and Europe also progressed in local currency. In contrast, sales in North America declined in double-digits, largely due to a difficult environment in the Oil Services business as well as the feeble Aviation business in Care Chemicals. Sales in the smallest region, the Middle East & Africa also decreased sharply. Catalysis sales improved by 12 % in local currency, mainly attributable to a profound sales increase in emission-control catalysts in India as well as an improvement in Specialty Catalysts and Petrochemicals. Care Chemicals reported a 4 % sales decrease as a result of the difficult environment for Aviation in the main European and North American markets. Sales in Natural Resources declined by 8 % in local currency as a strong recovery in Additives as well as resilient demand in Functional Minerals could not offset the decline in Oil and Mining Services. The continuing operations EBITDA decreased by 24 % in Swiss francs to CHF 159 million, including the disadvantageous currency effects, and the margin declined to 15.6 % from 18.5 % given a very high comparison base in the previous year. Nevertheless, the margin run rate in the fourth quarter improved over the 14.8 % generated in the first nine months of 2020. Despite the softer Aviation business, the profitability advanced in Care Chemicals, driven by a more favorable product mix and stringent margin management. The EBITDA declined significantly in Catalysis as a result of the lofty comparison base in the previous year and a proportionally higher sales contribution from lower-margin businesses. Natural Resources’ profitability weakened due to the continued difficult environment in Oil Services and Refinery. Discontinued operations For the full year 2020, sales in discontinued operations declined by 32 % in local currency and by 37 % in Swiss francs. On a like-for-like basis, excluding Healthcare Packaging sales from the full year 2019 as well as the Masterbatches sales from the second half of 2019, sales in local currency slightly decreased by 3 % as a result of the difficult economic environment amid COVID-19. In the fourth quarter, like-for-like Pigments sales increased by 1 % in local currency. For the full year 2020, the EBITDA margin was positively impacted by the gain on the disposal of the Masterbatches business in the third quarter of 2020. In the fourth quarter, the EBITDA margin was negatively influenced by the CHF 68 million provision for the rightsizing program. Excluding the effect of this provision, the EBITDA margin increased slightly compared to the previous year. Outlook – Focus on specialty portfolio and performance improvement to achieve above-market growth, higher profitability and stronger cash generation in the mid-term Clariant anticipates that the COVID-19 pandemic will still negatively impact sales, especially in Natural Resources, in the first quarter of 2021 versus the pre-COVID-19 comparable base in the first quarter of 2020. Despite rising feedstock prices Clariant aims to defend its margin levels in the first quarter of 2021 versus the prior year and will continue to focus on the safety of its employees, support to its communities, business continuity to its customers and stringent execution of its performance programs. This will be the fundament for taking the next step in 2021 to achieve above-market growth, higher profitability, and stronger cash generation in the mid-term. Clariant is executing its five-pillar strategy by focusing on innovation, adding value with sustainability, repositioning the portfolio, intensifying growth – particularly in Asia and China – and improving performance. The Group is strengthening its Environmental, Social and Governance ambitions in order to lead through sustainability and innovation. This becomes particularly evident in the increased ambition of CO2 reduction from base year 2019 until 2030 by 40 % for scope 1 and 2. In addition, Clariant is introducing the CO2 reduction by 14 % for scope 3 as a new target. In addition to these targets, Clariant is launching solutions to improve the CO2 footprint of its customers (handprint), such as the sunliquid® investment. Clariant is committed to reducing climate change and contributing to the United Nations Sustainable Development Goals. FY 2020 Financial Review EN FY 2020 Media Release EN Corporate Media Relations Investor Relations Jochen Dubiel Phone +41 61 469 63 63jochen.dubiel@clariant.com andreas schwarzwälder Phone +41 61 469 63 73andreas.schwarzwaelder@clariant.com Claudia Kamensky Phone +41 61 469 63 63claudia.kamensky@clariant.com Maria Ivek Phone +41 61 469 63 73maria.ivek@clariant.com Thijs Bouwens Phone +41 61 469 63 63thijs.bouwens@clariant.com Alexander Kamb Phone +41 61 469 63 73alexander.kamb@clariant.com Follow us on Twitter, Facebook, LinkedIn, Instagram. This media release contains certain statements that are neither reported financial results nor other historical information. This document also includes forward-looking statements. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond Clariant’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors such as: the timing and strength of new product offerings; pricing strategies of competitors; the Company’s ability to continue to receive adequate products from its vendors on acceptable terms, or at all, and to continue to obtain sufficient financing to meet its liquidity needs; and changes in the political, social and regulatory framework in which the Company operates or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. Clariant does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials. www.clariant.com Clariant is a focused, sustainable and innovative specialty chemical company based in Muttenz, near Basel/Switzerland. On 31 December 2020, the company employed a total workforce of 13 235. In the financial year 2020, Clariant recorded sales of CHF 3.860 billion for its continuing businesses. The company reports in three business areas: Care Chemicals, Catalysis and Natural Resources. Clariant’s corporate strategy is based on five pillars: focus on innovation and R&D, add value with sustainability, reposition portfolio, intensify growth, and increase profitability.

  • Clariant chairman to go in compromise deal with SABIC
    Reuters

    Clariant chairman to go in compromise deal with SABIC

    Clariant Chairman Hariolf Kottmann, who hailed the arrival of Saudi Arabia's SABIC as the chemical maker's top shareholder three years ago, became a casualty on Monday of a deal to try to patch up relations between the two sides. The Swiss company said Kottmann would not stand for re-election in April. The 65-year-old has led Clariant for more than a decade, but Saudi Basic Industries Corporation (SABIC) has become increasingly disenchanted with him, particularly after a planned joint venture collapsed in 2019.

  • Globe Newswire

    Clariant AG: Board of Directors decides on agenda items for the 26th Annual General Meeting

    Hariolf Kottmann informs Board of Directors to be no longer a candidate for the office of ChairmanBoard of Directors proposes Günter von Au to be elected as new Chairman of the Board of DirectorsOrdinary dividend of CHF 0.70 for fiscal year 2019 and 2020 combined Muttenz, February 1, 2021 – The Chairman of the Board Hariolf Kottmann has informed the Board of Directors in an extraordinary meeting that he will no longer be a candidate for a Member of the Board of Directors nor for the office of Chairman at the upcoming 26th Annual General Meeting in April 2021. Against this background and after intensive discussions, the members of the Board of Directors of Clariant unanimously suggest to the shareholders Günter von Au to be elected as new Chairman of the Board of Directors. Günter von Au has been a member of the Board of Directors since 2012 and acted as Vice Chairman from 2012 to 2018. The Board of Directors additionally proposes to the shareholders of the Company to distribute an ordinary dividend of CHF 0.70 per share. This includes CHF 0.55 per share for fiscal year 2019 and CHF 0.15 per share for 2020. By agreeing to the agenda items of the Board of Directors, the anchor shareholder SABIC withdraws its own proposals for the agenda of the Annual General Meeting, which it sent to the Company at the end of December 2020. These included a special dividend distribution to the shareholders of an amount up to CHF 2.00 per share and the amendment of article 20 of the articles of association – introduction of a time limit of 12 years for members of the Board of Directors including the Chairperson. Instead, the requested inclusion of the 12-year period will be anchored in the Bylaws of the Board of Directors. CORPORATE MEDIA RELATIONS INVESTOR RELATIONS JOCHEN DUBIEL Phone +41 61 469 63 63jochen.dubiel@clariant.com MARIA IVEK Phone +41 61 469 63 73maria.ivek@clariant.com CLAUDIA KAMENSKY Phone +41 61 469 63 63claudia.kamensky@clariant.com ALEXANDER KAMB Phone +41 61 469 63 73alexander.kamb@clariant.com THIJS BOUWENS Phone +41 61 469 63 63Thijs.bouwens@clariant.com Follow us on Twitter, Facebook, LinkedIn, Instagram. This media release contains certain statements that are neither reported financial results nor other historical information. This document also includes forward-looking statements. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond Clariant’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors such as: the timing and strength of new product offerings; pricing strategies of competitors; the Company’s ability to continue to receive adequate products from its vendors on acceptable terms, or at all, and to continue to obtain sufficient financing to meet its liquidity needs; and changes in the political, social and regulatory framework in which the Company operates or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. Clariant does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials. www.clariant.com Clariant is a focused, sustainable and innovative specialty chemical company based in Muttenz, near Basel/Switzerland. On 31 December 2019, the company employed a total workforce of 17 223. In the financial year 2019, Clariant recorded sales of CHF 4.399 billion for its continuing businesses. The company reports in three business areas: Care Chemicals, Catalysis and Natural Resources. Clariant’s corporate strategy is based on five pillars: focus on innovation and R&D, add value with sustainability, reposition portfolio, intensify growth, and increase profitability. Attachments Clariant Media Release BoD_AGM_agenda_20210129_EN Clariant Media Release_BoD_AGM_agenda_20210129_DE