Clariant Surpasses Q1 Profit Forecasts, Announces New CFO
By Dimitri Rhodes
(Reuters) -Swiss specialty chemicals maker Clariant reported a smaller-than-expected fall in first-quarter core profit on Tuesday as growth in care chemicals, absorbents and additives outweighed a seasonal decline in catalysts.
The group also said its board of directors has appointed Oliver Rittgen as chief financial officer from August 1 to succeed the retiring Bill Collins.
Clariant confirmed its 2025 and medium-term targets.
Following an unprecedented drop in order volumes from soaring energy prices and high inflation since 2022, the energy-intensive chemicals sector is now facing up to the prospect of U.S. import tariffs of at least 10%.
"We should be in a position to pass these (tariffs) on to our customers," CEO Conrad Keijzer said in a press call. "We obviously don't like that, but we have to do that."
Clariant shares were up 5.2% by 1028 GMT, leading the Swiss mid-cap index.
The company, whose chemicals are used in the production of smartphones and electric vehicles, says its focus is on locally produced specialty products with little-to-no local competition, especially in its catalyst unit.
In the U.S., 70% of products are made locally, while in China, the group will open two new factories by 2026 to bring local production up from 50% to 70%, Keijzer told journalists. In Europe, that figure is as high as 90%, he added.
"Nonetheless, we believe the lower global outlook could impact expectations for Additives & Adsorbents, for the industrial exposure of Care Chemicals and potentially even further slow down the refill business in Catalysts," analysts at Baader said in a note.
Clariant's earnings before interest, taxes, depreciation and amortisation (EBITDA) after exceptional items fell 12% year-on-year to 152 million Swiss francs ($185 million) in the first quarter.
Analysts, on average, had forecast 144 million francs in a company-provided poll.
"It seems the earnings beat is likely due to much better than expected cost management," analysts at JPMorgan wrote.
($1 = 0.8238 Swiss francs)
(Reporting by Dimitri Rhodes; Editing by Janane Venkatraman, Christian Schmollinger and Jan Harvey)
