Clariant today announced full-year 2015 sales of CHF 5.807 billion compared to CHF 6.116 billion in 2014. This corresponds to a 3 % growth in local currencies mainly driven by higher volumes. Due to the strong currency headwind, sales in Swiss francs decreased by 5 %.

Growth in the Americas was good, with sales in local currencies up 19 % in Latin America and 4 % in North America. Europe was 1 % lower in local currencies impacted by a weaker end-market demand.

Lower growth came from the regions Asia / Pacific and Middle East & Africa. Sales in Asia / Pacific decreased by 1 % in local currencies and were affected by a weak demand in China, which could not be compensated by the stronger demand of smaller economies in Asia. In the Middle East & Africa region, sales were down 6 % year-on-year in local currencies.

“Despite the challenging economic environment throughout the year, we continued to improve our performance again and have shown resilience,” said CEO Hariolf Kottmann. “Clariant has significantly improved its cash flow and expanded its EBITDA margin on the back of a good performance of the Business Areas Care Chemicals, Catalysis and Natural Resources. With this positive development we have been able to offset the negative impact of the stronger Swiss franc and deliver a net result comparable to 2014. For 2016, in spite of the economic environment anticipated to become even more demanding, we want to further progress in profitability and cash flow generation by continuously launching new innovative solutions particularly in our higher margin Business Areas.”

The improved business performance stemmed primarily from higher growth in the Business Areas Care Chemicals, Catalysis and Natural Resources. In Care Chemicals sales in local currencies were up 4 %, reaching CHF 1.445 billion. Adjusted for the portfolio change, on a like-for-like basis, growth in local currency was 6 % year-on-year.

Sales in Catalysis rose by 4 % in local currencies to CHF 704 million fueled by strong growth in Petrochemicals and Syngas. Sales growth year-on-year was impacted by the divestment of the Energy Storage business in February 2015. On a like-for-like basis sales in Catalysis have grown by 7 % versus the previous year.

Despite the difficult market environment, sales in Natural Resources grew by 4 % in local currencies reaching sales of CHF 1.217 billion primarily driven by the Oil and Mining Services business.

In Plastics & Coatings, sales in local currencies grew slightly by 1 % to CHF 2.441 billion, despite the very challenging environment in Pigments resulting from the weak demand in Europe and China.

The gross margin of 30.8 % was above the previous year’s level of 29.0 %, benefiting from a positive mix effect, lower raw material costs and reclassification of costs to SG&A.

The EBITDA before exceptional items from continuing operations reached CHF 853 million up 8 % in local currencies year-on-year resulting from a favorable volume mix.

The EBITDA b.e.i. margin increased to 14.7 % by 50 basis points above the previous year’s level. The margin expansion came predominantly from the Business Areas Care Chemicals, Catalysis, as well as Natural Resources, which all significantly increased the EBITDA margins throughout 2015 compared to the previous year. In Plastics & Coatings, margins decreased due to the increasing challenging markets especially in Pigments throughout 2015.

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 yearon-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.