- Email: [email protected]
Clariant reports sales and income growth for full-year 2018
FINANCIALS
laboratory is situated at Evonik’s Baekerpfad facility in Krefeld, Germany. The move is part of the company’s strategy to grow its presence in the international marketplace. According to Sudarshan, the location for the application development facility was chosen after a ‘competitive analysis’ process. ‘The complete package was a perfect fit’, comments Dr Christian Maus, head of technical marketing and product development digital at Sudarshan. ‘The services, the high degree of support, the infrastructure, the link to the University of Applied Sciences Niederrhein, as well as potential new offices and lab spaces convinced us’, he says. Sudarshan’s fast growth requires ‘pragmatic and fast acting partners’, which it found at the Evonik site, Maus explains. In a first step, the new laboratory is being set up to operate and conduct application development work in close collaboration with customers. Sudarshan’s employees were scheduled to transfer into the new facility during February. Sudarshan is the market leader for pigments in India for the paints, coatings, inks and plastics industries, and is the number four pigments manufacturer globally, according to Milan Krumbe, general manager Sudarshan Europe. The company is currently growing ‘on a double digit level’ and its target is to become the third largest in the global industry, he reports. To achieve this aim it is therefore investing in new markets, Krumbe explains. Sudarshan is headquartered in Pune, India, and employs around 2000 people globally. More information: www.sudarshan.com
FINANCIALS Clariant reports sales and income growth for full-year 2018
F
or full-year 2018, Swiss speciality chemicals producer Clariant posted net income of CHF356 million (c. E315 million) on net sales of CHF6.62 billion. In Swiss franc terms, these figures represent increases of 18% and 4%, respectively, compared to net income of CHF302 million and annual sales of CHF6.38 billion reported in 2017. Sales rose 5% year on year in local currency terms on the back of higher volumes and pricing.
April 2019
In 2018, all regions contributed to the sales growth, led by Latin America where sales increased by 12%. In Asia sales were up by 7% and in North America by 5%. Sales in both the Europe and Middle East & Africa regions rose 2%. All of Clariant’s Business Areas contributed to the improved full-year sales performance and in particular Care Chemicals (+7% in local currency), Catalysis (+11%) and Natural Resources (+8%). In Plastics & Coatings, sales rose by 1% in local currency with strong regional expansion in Latin America, the company reports. EBITDA before exceptional items increased by 5% in Swiss francs to CHF1.02 billion in 2018, up from CHF974 million the previous year. According to Clariant, the absolute profitability improvement was attributable to positive contributions from Care Chemicals, Catalysis and Plastics & Coatings. The associated EBITDA margin before exceptional items advanced to 15.4% from 15.3% in 2017. Operating cash flow rose by 24% year on year while net debt fell by CHF165 million. In the fourth quarter of 2018, the company’s sales totalled CHF1.63 billion compared to CHF1.68 billion in 4Q 2017, a 3% drop attributed to unfavourable currency exchange rates but a 3% increase in local currency terms. Most regions posted positive growth apart from Europe where sales fell 2% due to the ‘challenging comparison base’ in 4Q 2017. EBITDA before exceptional items declined by 2% to CHF253 million in 4Q 2018 but the associated margin increased from 15.3% to 15.5%. Focusing on the Plastics & Coatings Business Area, global sales for full-year 2018 increased by 1% in both local currency and Swiss franc terms to CHF2.70 billion, against a very strong comparison base in 2017 (CHF2.68 billion). EBITDA before exceptional items expanded by 6% in Swiss francs to CHF412 million despite a strong previous year, Clariant says. The profitability improvement was primarily attributable to Additives and Masterbatches and some income from Stahl. The associated margin increased from 14.5% in 2017 to 15.2% last year. In Masterbatches, the sales growth in local currency was driven by increased demand in Latin America and Asia, the company reports. The consumer goods and automotive sectors were strong performers and healthcare packaging also showed an attractive sales development in 2018. Sales in Pigments remained flat overall for the year but grew in Latin America and Asia, especially in China and Japan. The coatings and plastic application business lines reported continued sales growth during the year. Additives sales remained ‘very strong’ in 2018,
Additives for Polymers
7
FINANCIALS
Clariant reports, supported by all business lines and also by solid demand in almost all regions, especially in North America, China and Europe. The company produces a range of additives for plastics, including halogen-free flame retardants. In the fourth quarter of 2018, the Plastics & Coatings Business Area generated sales of CHF612 million, a decline of 8% in Swiss francs compared to 4Q 2017 sales of CHF664 million and a drop of 3% in local currency. Softer demand in Asia and Europe, continuing from the third quarter, was the main reason for the 4Q sales slowdown. EBITDA before exceptional items of CHF71 million in 4Q 2018 was on a par with the same period in 2017 but the associated margin improved from 10.8% to 11.6%. More information: www.clariant.com
Venator posts losses in fourth quarter and full-year 2018
P
igments and additives producer Venator Materials generated annual revenues of US$2.265 billion in 2018, an increase of 2.5% from revenues of $2.209 billion the previous year. However, the company posted a net loss of $163 million for the year, including a restructuring charge of $628 million, compared to a net profit of $134 million in 2017. Adjusted EBITDA amounted to $436 million in 2018, an increase of 10% from $395 million a year earlier. The company’s sales in the fourth quarter of 2018 were 8% lower than in the same period of the previous year at $484 million. Adjusted EBITDA was $45 million in 4Q 2018, down significantly from $118 million a year earlier. Net loss attributable to Venator was $69 million in 4Q 2018, including a restructuring charge of $55 million, compared to net income of $68 million in 4Q 2017. According to the company’s CEO Simon Turner, typical fourth quarter seasonality was ‘amplified’ by softness in the titanium dioxide (TiO2) sector, due largely to customer destocking in China and Europe, and higher raw material and energy costs. Venator has implemented a new comprehensive cost and operational improvement programme in response to both the current economic environment and its reduced TiO2 manufacturing footprint due to the fire at the Pori plant in Finland [ADPO, May 2017]. These actions are designed to improve profitability, starting with
8
Additives for Polymers
the rationalization of senior leadership and simplification of the company’s organizational structure, Turner reports. As a result of the improvement programme, a $60 million reduction in working capital is anticipated in 2019 with annual run-rate savings of about $40 million from 2020. Venator is also focused on transferring its speciality TiO2 technology from Pori to other sites within its network, Turner says. The company’s Titanium Dioxide segment generated revenue of $366 million in 4Q 2018, a decrease of $21 million, or 5%, compared to the same period in 2017. The decrease was primarily due to a 6% decrease in sales volumes and a 1% negative foreign currency translation impact, partially offset by a 1% increase in average selling prices and a 1% improvement due to mix and other factors. The sales volumes decreased due to lower demand for functional product grades relating to customer destocking, coupled with the lower availability of certain speciality grade products. Average selling prices for speciality grades increased in the quarter. The segment’s adjusted EBITDA was $52 million for 4Q 2018, a decrease of $67 million compared to the same period in 2017, of which $33 million was attributable to lost earnings from the Pori facility, which were reimbursed via insurance proceeds in 4Q 2017, Venator reports. The decline in volumes and higher raw material and energy costs also contributed to the reduced earnings. In 4Q 2018, the TiO2 segment incurred a $52 million pre-tax restructuring expense, of which approximately $50 million is non-cash relating largely to accelerated depreciation at Pori. For the year as a whole, the segment achieved sales of $1.67 billion, up 4% compared to 2017. Adjusted EBITDA improved by 8% to $417 million, Venator reports. The Performance Additives segment (which includes coloured pigments) garnered revenue of $118 million in 4Q 2018, $23 million or 16% lower compared to the same period in 2017 due largely to a 13% decrease in volumes. Adjusted EBITDA for the segment was $3 million in 4Q 2018, $12 million lower than in the comparable period in 2017. Full-year sales for Performance Additives were $599 million, down 1% year on year, while adjusted EBITDA was down 14% to $42 million. Venator is a global manufacturer and marketer of pigments and additives. The company operates 24 facilities and employs about 4300 associates worldwide. More information: www.venatorcorp.com
April 2019
laboratory is situated at Evonik’s Baekerpfad facility in Krefeld, Germany. The move is part of the company’s strategy to grow its presence in the international marketplace. According to Sudarshan, the location for the application development facility was chosen after a ‘competitive analysis’ process. ‘The complete package was a perfect fit’, comments Dr Christian Maus, head of technical marketing and product development digital at Sudarshan. ‘The services, the high degree of support, the infrastructure, the link to the University of Applied Sciences Niederrhein, as well as potential new offices and lab spaces convinced us’, he says. Sudarshan’s fast growth requires ‘pragmatic and fast acting partners’, which it found at the Evonik site, Maus explains. In a first step, the new laboratory is being set up to operate and conduct application development work in close collaboration with customers. Sudarshan’s employees were scheduled to transfer into the new facility during February. Sudarshan is the market leader for pigments in India for the paints, coatings, inks and plastics industries, and is the number four pigments manufacturer globally, according to Milan Krumbe, general manager Sudarshan Europe. The company is currently growing ‘on a double digit level’ and its target is to become the third largest in the global industry, he reports. To achieve this aim it is therefore investing in new markets, Krumbe explains. Sudarshan is headquartered in Pune, India, and employs around 2000 people globally. More information: www.sudarshan.com
FINANCIALS Clariant reports sales and income growth for full-year 2018
F
or full-year 2018, Swiss speciality chemicals producer Clariant posted net income of CHF356 million (c. E315 million) on net sales of CHF6.62 billion. In Swiss franc terms, these figures represent increases of 18% and 4%, respectively, compared to net income of CHF302 million and annual sales of CHF6.38 billion reported in 2017. Sales rose 5% year on year in local currency terms on the back of higher volumes and pricing.
April 2019
In 2018, all regions contributed to the sales growth, led by Latin America where sales increased by 12%. In Asia sales were up by 7% and in North America by 5%. Sales in both the Europe and Middle East & Africa regions rose 2%. All of Clariant’s Business Areas contributed to the improved full-year sales performance and in particular Care Chemicals (+7% in local currency), Catalysis (+11%) and Natural Resources (+8%). In Plastics & Coatings, sales rose by 1% in local currency with strong regional expansion in Latin America, the company reports. EBITDA before exceptional items increased by 5% in Swiss francs to CHF1.02 billion in 2018, up from CHF974 million the previous year. According to Clariant, the absolute profitability improvement was attributable to positive contributions from Care Chemicals, Catalysis and Plastics & Coatings. The associated EBITDA margin before exceptional items advanced to 15.4% from 15.3% in 2017. Operating cash flow rose by 24% year on year while net debt fell by CHF165 million. In the fourth quarter of 2018, the company’s sales totalled CHF1.63 billion compared to CHF1.68 billion in 4Q 2017, a 3% drop attributed to unfavourable currency exchange rates but a 3% increase in local currency terms. Most regions posted positive growth apart from Europe where sales fell 2% due to the ‘challenging comparison base’ in 4Q 2017. EBITDA before exceptional items declined by 2% to CHF253 million in 4Q 2018 but the associated margin increased from 15.3% to 15.5%. Focusing on the Plastics & Coatings Business Area, global sales for full-year 2018 increased by 1% in both local currency and Swiss franc terms to CHF2.70 billion, against a very strong comparison base in 2017 (CHF2.68 billion). EBITDA before exceptional items expanded by 6% in Swiss francs to CHF412 million despite a strong previous year, Clariant says. The profitability improvement was primarily attributable to Additives and Masterbatches and some income from Stahl. The associated margin increased from 14.5% in 2017 to 15.2% last year. In Masterbatches, the sales growth in local currency was driven by increased demand in Latin America and Asia, the company reports. The consumer goods and automotive sectors were strong performers and healthcare packaging also showed an attractive sales development in 2018. Sales in Pigments remained flat overall for the year but grew in Latin America and Asia, especially in China and Japan. The coatings and plastic application business lines reported continued sales growth during the year. Additives sales remained ‘very strong’ in 2018,
Additives for Polymers
7
FINANCIALS
Clariant reports, supported by all business lines and also by solid demand in almost all regions, especially in North America, China and Europe. The company produces a range of additives for plastics, including halogen-free flame retardants. In the fourth quarter of 2018, the Plastics & Coatings Business Area generated sales of CHF612 million, a decline of 8% in Swiss francs compared to 4Q 2017 sales of CHF664 million and a drop of 3% in local currency. Softer demand in Asia and Europe, continuing from the third quarter, was the main reason for the 4Q sales slowdown. EBITDA before exceptional items of CHF71 million in 4Q 2018 was on a par with the same period in 2017 but the associated margin improved from 10.8% to 11.6%. More information: www.clariant.com
Venator posts losses in fourth quarter and full-year 2018
P
igments and additives producer Venator Materials generated annual revenues of US$2.265 billion in 2018, an increase of 2.5% from revenues of $2.209 billion the previous year. However, the company posted a net loss of $163 million for the year, including a restructuring charge of $628 million, compared to a net profit of $134 million in 2017. Adjusted EBITDA amounted to $436 million in 2018, an increase of 10% from $395 million a year earlier. The company’s sales in the fourth quarter of 2018 were 8% lower than in the same period of the previous year at $484 million. Adjusted EBITDA was $45 million in 4Q 2018, down significantly from $118 million a year earlier. Net loss attributable to Venator was $69 million in 4Q 2018, including a restructuring charge of $55 million, compared to net income of $68 million in 4Q 2017. According to the company’s CEO Simon Turner, typical fourth quarter seasonality was ‘amplified’ by softness in the titanium dioxide (TiO2) sector, due largely to customer destocking in China and Europe, and higher raw material and energy costs. Venator has implemented a new comprehensive cost and operational improvement programme in response to both the current economic environment and its reduced TiO2 manufacturing footprint due to the fire at the Pori plant in Finland [ADPO, May 2017]. These actions are designed to improve profitability, starting with
8
Additives for Polymers
the rationalization of senior leadership and simplification of the company’s organizational structure, Turner reports. As a result of the improvement programme, a $60 million reduction in working capital is anticipated in 2019 with annual run-rate savings of about $40 million from 2020. Venator is also focused on transferring its speciality TiO2 technology from Pori to other sites within its network, Turner says. The company’s Titanium Dioxide segment generated revenue of $366 million in 4Q 2018, a decrease of $21 million, or 5%, compared to the same period in 2017. The decrease was primarily due to a 6% decrease in sales volumes and a 1% negative foreign currency translation impact, partially offset by a 1% increase in average selling prices and a 1% improvement due to mix and other factors. The sales volumes decreased due to lower demand for functional product grades relating to customer destocking, coupled with the lower availability of certain speciality grade products. Average selling prices for speciality grades increased in the quarter. The segment’s adjusted EBITDA was $52 million for 4Q 2018, a decrease of $67 million compared to the same period in 2017, of which $33 million was attributable to lost earnings from the Pori facility, which were reimbursed via insurance proceeds in 4Q 2017, Venator reports. The decline in volumes and higher raw material and energy costs also contributed to the reduced earnings. In 4Q 2018, the TiO2 segment incurred a $52 million pre-tax restructuring expense, of which approximately $50 million is non-cash relating largely to accelerated depreciation at Pori. For the year as a whole, the segment achieved sales of $1.67 billion, up 4% compared to 2017. Adjusted EBITDA improved by 8% to $417 million, Venator reports. The Performance Additives segment (which includes coloured pigments) garnered revenue of $118 million in 4Q 2018, $23 million or 16% lower compared to the same period in 2017 due largely to a 13% decrease in volumes. Adjusted EBITDA for the segment was $3 million in 4Q 2018, $12 million lower than in the comparable period in 2017. Full-year sales for Performance Additives were $599 million, down 1% year on year, while adjusted EBITDA was down 14% to $42 million. Venator is a global manufacturer and marketer of pigments and additives. The company operates 24 facilities and employs about 4300 associates worldwide. More information: www.venatorcorp.com
April 2019