Clariant lags core profit forecast as Iran war weighs, but says the hit is easing

Clariant Core Profit Misses Forecast as Iran War Eases, Outlook Stable

Clariant's Financial Performance and Outlook Amid Middle East Conflict

By Marta Frackowiak and Cian Muenster

Quarterly Results and Market Reaction

Nov 3 (Reuters) - Speciality chemicals maker Clariant reported a weaker-than-expected quarterly core profit on Tuesday, sending its shares 2% lower, as volumes in its Catalysts business continued to be hurt by the Iran war.

Impact of Middle East Exposure

The Swiss company is disproportionately affected by the conflict due to the Catalysts unit's large Middle East exposure, CEO Conrad Keijzer told journalists, reiterating his comments from July. The region makes up 10% of Clariant's revenue.

Profit Figures and Analyst Expectations

Its adjusted earnings before interest, taxes, depreciation and amortisation fell 6.5% from a year ago to 151.5 million Swiss francs ($185 million), missing analysts' 159 million franc forecast provided by the company.

Business Segment Performance

Care Chemicals and Adsorbents & Additives

"Care Chemicals and Adsorbents & Additives recorded pricing-led growth, while Catalysts' volumes remained impacted by the Middle East conflict," Keijzer said in the earnings statement.

Catalysts Segment and Supply Chain Disruptions

Clariant has benefited from the Middle East-related supply disruptions less than some European chemical peers, because customers operating at high utilisation rates delayed catalyst refill orders, while some clients remained under force majeure, he added during a press call.

Volume Trends in Catalysts

However, the 1.9% volume drop in Catalysts was much smaller than the 14.2% decline seen in the second quarter.

Demand Recovery and Sector Growth

Demand is slowly recovering, but the rebound remains fragile as growth in sectors such as defence and data centres has yet to translate into a broader recovery in chemicals demand, Keijzer said.

Outlook and Future Expectations

2026 Outlook and Order Book

Clariant maintained its 2026 outlook, citing a strong fourth-quarter order book, particularly in Catalysts, and continued progress on its cost-cutting programme.

Fourth-Quarter Revenue Expectations

Keijzer said fourth-quarter Catalysts revenue should be as strong as last year. "In terms of mix, if we look at the order book right now, it should even be positive relative to the prior year," he added.

Cost Savings and Operational Efficiency

COST SAVINGS ON TRACK

Clariant, whose chemicals are used in production of smartphones and electric vehicles, said it recorded 10 million francs in annualised cost savings in the third quarter.

Year-to-Date Savings and Measures Taken

That brought year-to-date savings to 79 million francs, keeping Clariant on track to reach 90 million francs by the end of 2026. The savings came from job cuts, procurement measures and site rationalisation, which helped offset inflationary pressures.

Impact on Workforce

Chief Financial Officer Oliver Rittgen told journalists that 700 positions were affected by layoffs.

Additional Information

($1 = 0.8180 Swiss francs)

(Reporting by Marta Frąckowiak and Cian Münster in Gdansk; Editing by Anna Pruchnicka and Milla Nissi-Prussak)