Clariant, the Swiss chemicals company, announced a decline in third-quarter sales due to weak demand in its additives business. However, the company remains confident in achieving its 2023 guidance.
In the third quarter, Clariant recorded quarterly sales of 1.03 billion Swiss francs ($1.14 billion), marking a 21% decrease compared to the same period last year when the sales were CHF1.31 billion. Meanwhile, the earnings before interest taxes, depreciation, and amortization (EBITDA) amounted to CHF159 million, reflecting a 28% decline from the previous year. The EBITDA margin was recorded at 15.4%, down from 16.8% in the previous year.
These results are slightly lower than the anticipated CHF1.05 billion in sales and CHF145 million in EBITDA, as projected by industry analysts.
Additives Business Challenges
Clariant's additives business faced ongoing destocking throughout the third quarter, and its volumes and pricing were negatively affected by weak demand in various end markets. As a consequence, the business saw a significant drop in both EBITDA (62%) and sales (24%) across all geographical regions.
Care Chemicals Business
The care chemicals business of Clariant also experienced challenges, with a decline of 28% in sales and 37% in EBITDA.
Outlook and Future Projections
Despite the prevailing economic uncertainties, Clariant expects to see an easing of inflation while not anticipating a complete economic recovery in the final quarter of the year. Nonetheless, the company remains optimistic about achieving its previously stated 2023 sales targets. Clariant aims for sales figures between CHF4.55 billion and CHF4.65 billion, along with an EBITDA range of CHF650 million to CHF700 million.
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