Clariant reports quarterly profit miss as Iran war hits demand, drives up costs
Clariant's First Quarter Financial Performance and Impact of Middle East Conflict
Quarterly Earnings Overview
May 8 (Reuters) - Swiss speciality chemicals maker Clariant reported a lower-than-expected adjusted core profit for the first quarter on Friday, as the Middle East conflict impacted demand in its catalysts business in particular.
Adjusted for exceptional items, earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 16% to 160.2 million Swiss francs ($205.44 million) in the quarter, slightly below analysts' forecast of 162 million francs in a poll provided on the company's website.
Company Guidance and Outlook
Clariant kept its guidance for the year unchanged but said the war was causing higher input costs, and overall elevated uncertainty and volatility.
CEO Statement on Regional Impact
"The Middle East conflict is mainly impacting our Catalysts customers in the Middle East and Asia, with sales now expected to be below the prior year," CEO Conrad Keijzer said in a press release.
Market Disruptions and Cost Pressures
The U.S.-Israeli war with Iran has disrupted fuel and feedstock markets, pushing up costs for the energy-intensive chemicals sector.
Clariant's Response to Rising Costs
To offset rising raw material and energy costs, the company has implemented value-based pricing and continues to focus on cost-cutting measures, while relying on its global network and proactive logistics to ensure uninterrupted customer supplies, Keijzer said.
Additional Information
($1 = 0.7798 Swiss francs)
(Reporting by Marta Frąckowiak in Gdansk; Editing by Milla Nissi-Prussak)
