On July 25, Clariant announced first half year 2019 continuing operations sales of CHF 2.229 billion compared to CHF 2.224 billion in the first half year 2018. This corresponds to an organic growth of 4% in local currency. Both higher volumes and pricing contributed to this expansion.

For the first half year, almost all regions contributed to the continuing operations sales growth in local currency. Sales in Latin America grew the strongest by 10%, followed by the Middle East & Africa at 8%. In Asia and Europe, the sales development was a good 5% and 4%, respectively. China, however, was down by 9% while North America reported a slight contraction of 3%.

The improved sales performance in the first half year 2019 resulted from growth in the Business Areas Catalysis and Natural Resources, which both reported strong expansion. Natural Resources newly includes the Business Unit Additives, in addition to Oil & Mining Services and Functional Minerals. Sales in Catalysis rose by a robust 8% in local currency primarily supported by Syngas. Natural Resources sales rose by 6% in local currency with a very notable expansion in Oil & Mining Services and some progression in Functional Minerals. Additives sales declined due to the softer consumer electronics and automotive markets.

Care Chemicals sales remained unchanged in local currency against a strong comparison base despite temporary raw material supply issues, mainly in the second quarter of 2019. Sales in discontinued operations (Masterbatches and Pigments) declined by 2% in local currency, negatively impacted by the weakened economic environment.

Continuing operations EBITDA after exceptional items was negatively impacted by the one-off provision of CHF 231 million as a result of further developments in an ongoing competition law investigation by the European Commission into the ethylene purchasing market. Therefore, EBITDA decreased significantly to CHF 102 million compared to CHF 341 million in the previous year.

In terms of the operational performance and excluding the effect of this provision, the continuing operations EBITDA after exceptional items only slightly decreased by 2% in Swiss francs to CHF 333 million. The profitability in Natural Resources improved due to the stronger top-line growth in tandem with the more optimized cost base in Oil & Mining Services; however, temporary negative influences in Care Chemicals and Catalysis in the second quarter resulted in this slightly negative growth. The corresponding continuing operations EBITDA margin after exceptional items based upon the operational performance was 14.9%.

The net result for the total Group including discontinued operations was minus CHF 101 million versus CHF 211 million in the first half year 2018. The development was negatively impacted by one-time project costs related to the carve-out of the discontinued operations as well as the one-off provision of CHF 231 million.

Operating cash flow for the total Group rose by 11% to CHF 113 million from CHF 102 million in the previous year, driven by lower taxes and favorable developments in inventories.

Net debt for the total Group increased to CHF 1.801 billion versus CHF 1.374 billion as of the end of 2018 following the normal seasonal cash flow pattern. In addition, the first time implementation of IFRS 16 in 2019 increased net debt by CHF 218 million.