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Chemicals maker Clariant misses Q1 profit forecast as low volumes weigh

Published 05/05/2023, 06:40
Updated 05/05/2023, 06:47
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(Reuters) - Swiss specialty chemicals maker Clariant missed first-quarter core profit expectations on Friday, saying price increases were not enough to offset lower volumes as customers cut inventories and demand fell in some business areas.

The group's core operating profit (EBITDA) from continuing operations fell 24% to 167 million Swiss francs ($189 million) in the quarter, below the 176 million Swiss francs expected by analysts in a poll provided by the company.

The company also cited a 13 million franc hit from operational issues at its Sunliquid plant in Romania and a 11 million franc negative one-off fair value adjustment of the Heubach Group participation.

Clariant earlier this year warned that a soft recession in the first half of the year and one-off payments would weigh on its annual sales as the Swiss group, like European chemicals peers, grapples with high costs.

Its quarterly margin on EBITDA fell to 13.9%, missing analysts' estimate of 14.6%.

Clariant, whose chemicals are used in personal and home care products, confirmed its 2023 outlook for sales of around 5 billion Swiss francs and an improved core profit margin.

($1 = 0.8838 Swiss francs)

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