Clariant significantly improves cash flow and for the 7th consecutive year increases margins - Seite 3

Net income from continuing operations amounted to CHF 227 million comparable to CHF 235 million in the previous year. The lower tax expense could offset the higher financial costs as well as the lower gains from divestments versus 2014.  The tax rate in 2015 was 24.3 %, significantly lower than the previous year.

Operating cash flow rose significantly to CHF 502 million versus CHF 334 million year-on-year stemming from a sustainable net working capital management.

Net debt at CHF 1.312 billion was slightly higher compared to the CHF 1.263 billion recorded at year-end 2014.

Despite the more difficult economic environment as well as the significant appreciation of the Swiss franc, the solid performance allows the board of directors to propose to the Annual General Meeting a dividend of CHF 0.40 per share at the same level as in the previous year following an 11 % dividend increase the year earlier. The distribution is proposed to be made from the capital contribution reserve that is exempt from Swiss withholding tax.

Fourth quarter 2015 - More margin expansion

In the fourth quarter of 2015, Clariant sales grew by 4 % in local currency to CHF 1.526 billion. Due to the strong currency headwind, sales decreased by 4 % in Swiss francs. Volumes were up 4 % compared to the previous year period.

In the fourth quarter, growth stemmed from the higher growth business areas, primarily Catalysis and Natural Resources. Care Chemicals reported sales of CHF 370 million up only 3 % in local currencies impacted by a very weak de-icing business due to the mild weather in the fourth quarter. Catalysis sales in local currencies grew by 6 % to CHF 241 million versus the previous year period. Sales in the Natural Resources Business Area were up 7 % in local currencies to CHF 329 million, and sales in Plastics & Coatings were CHF 586 million, an increase of 3 % in local currencies.  

On a regional level, Latin America achieved double-digit growth in local currencies of   19 %. North America increased sales by 2 % in local currency, Europe was up 1 % in local currency, while Asia was down 1 % versus the previous year.

The gross margin was higher year-on-year, at 30 % compared to 28.8 % thanks to a better mix effect, lower raw material costs and reclassification of costs to SG&A. The EBITDA margin before exceptional items expanded to 15.0 % from 14.6 % in the fourth quarter of 2014 primarily driven by Catalysis and Natural Resources.