By Pierre Bertrand
Clariant reported lower third-quarter sales after weak demand hurt its additives business but reiterated its 2023 guidance.
The Swiss chemicals company said Monday it made 1.03 billion Swiss francs ($1.14 billion) in quarterly sales, a 21% decrease compared with CHF1.31 billion in the same period a year earlier.
The company’s earnings before interest taxes, depreciation and amortization came to CHF159 million, a 28% decline compared with a year ago. It achieved a 15.4% Ebitda margin, down from 16.8% a year ago.
The result compares with expectations of CHF1.05 billion in quarterly sales and CHF145 million in Ebitda, according to a company-provided consensus of analysts’ views.
Clariant’s additives business saw continued destocking in the third quarter while weak demand in end markets hit its volumes and pricing. The business saw a 62% drop in Ebitda and a 24% decline to sales, which fell in all geographies, the company said.
Sales and Ebitda at its care chemicals business fell 28% and 37%, respectively, Clariant said.
Clariant added that it expects to see inflation ease but no economic recovery in the last quarter of the year. That said, the company reiterated that it expects 2023 sales of between CHF4.55 billion and CHF4.65 billion and Ebitda of CHF650 million to CHF700 million.
Write to Pierre Bertrand at [email protected]
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