2018-10-31
Swiss chemical firm Clariant said on Wednesday it had slowed sales growth in the third quarter due to weak demand in China while its business in the Middle East and Africa declined.
 
Saudi Basic Industries Corporation (SABIC) is Clarion's largest shareholder.
 
Clariant said third-quarter net profit before interest, tax, depreciation and amortization was 241 million Swiss francs ($ 239.78 million), compared with an average of 247 million Swiss francs in a Reuters survey.
 
Sales in local currencies rose 5 percent to 1.6 billion francs, compared with 1.627 billion in the Reuters survey, the company said in a statement. Clarion's sales were up 7 percent in the second quarter.
 
Clareant appointed four new board members from SABIC this month despite the crisis that resulted from the killing of Saudi journalist Jamal Khashoggi at the Saudi consulate in Istanbul.
 
The company said its business in China did not keep pace with the strong results recorded in the same quarter a year ago.
 
The results were also affected by the drop in sales of the chemical catalyst sector, one of the company's main sectors, by 4 percent compared with a record high in the same quarter of 2017.
 
"Clareant expects the economic environment in mature markets to remain strong ... although it is growing at a slower pace," the company said in a statement.
 
Operating profit as a percentage of sales slowed 15 percent in the third quarter and 15.3 percent in the first nine months of the year, well below the 20 percent it seeks to achieve by 2021 as part of deepening its partnership with SABIC.
 
The company kept its 2018 forecast and expressed confidence in its ability to achieve local currency growth and provide capital flow from operations.