Clariant posts H1 profit, to focus on cash

Credit: REUTERS/MORITZ HAGER

Swiss speciality chemicals company Clariant posted a first-half net profit of 75 million Swiss francs ($82.2 million)from continuing operations as sales from continuing operations fell 5% in local currency to 1.95 billion francs.

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ZURICH, July 30 (Reuters) - Swiss speciality chemicals company Clariant CLN.S posted a first-half net profit of 75 million Swiss francs ($82.2 million)from continuing operations as sales from continuing operations fell 5% in local currency to 1.95 billion francs.

It said 2020 results would be impacted by the COVID-19 pandemic so its focus would be on mitigation and cash generation.

"Clariant anticipates a continued negative impact on sales and profitability from the COVID-19 pandemic in the third quarter of 2020," it said.

"Clariant's three core speciality business areas are executing performance programs to generate resilient results during these times and to achieve above-market growth, higher profitability and stronger cash generation in the mid-term."

Clariant has been in a massive sell-off process that when completed will divest businesses that previously made up one-third of sales.

After completing the $1.6 billion sale of master batches this month with U.S.-based Avient POL.N, Clariant is still preparing to sell its pigments divisions that makes dyes including for the car and building industries.

($1 = 0.9129 Swiss francs)

(Reporting by Michael Shields and John Miller, editing by John Revill and Uttaresh.V)

((J.Miller@thomsonreuters.com; +41 58 306 7734; Reuters Messaging: j.miller.thomsonreuters.com@reuters.net))

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