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Investing.com -- Swiss specialty chemicals company Clariant AG (SIX:CLN) on Thursday lowered its full-year sales growth outlook to 1-3% in local currency terms, down from its previous guidance of 3-5%, the company announced in its second quarter results.
Despite the reduced sales forecast, Clariant maintained its EBITDA margin target of 17-18%, which implies an EBITDA of approximately CHF705 million at the midpoint.
The company also reduced its capital expenditure target to CHF200 million from the previous range of CHF210-220 million.
For the second quarter, Clariant reported adjusted EBITDA of CHF169 million, slightly above Jefferies analyst expectations.
Group sales reached CHF968 million, with flat organic growth on a local currency basis as both volumes and pricing remained unchanged. Currency effects had a negative 8% impact on sales.
The company’s performance varied across its business segments. The Catalysts division outperformed expectations with adjusted EBITDA of CHF49 million, showing an 18% improvement compared to Jefferies analyst forecasts.
This segment saw sales increase by 5% in local currency terms, driven by volume growth.
Meanwhile, the Care Chemicals segment underperformed with adjusted EBITDA of CHF88 million, 6% below Jefferies analyst estimates. Sales in this division declined by 2% in local currency terms due to volume decreases.
The Adsorbents & Additives segment reported adjusted EBITDA of CHF50 million, with sales of CHF253 million representing a 1% increase in local currency terms.
Clariant noted that foreign exchange now represents a 5% headwind on sales, up from the previously estimated 2%. The company’s cost-saving target remains unchanged at CHF80 million by the end of 2027.
From a financial perspective, Clariant reported first-half operating cash flow of CHF116 million, slightly above the CHF112 million recorded in the same period last year. Net debt stood at CHF1,596 million, representing a net debt to EBITDA ratio of 2.6x.
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