Clariant, a world leader in specialty chemicals, today announced that 2010 sales totaled CHF 7.120 billion, compared to CHF 6.614 billion in 2009. This represents an increase of 13 % in local currency and 8 % in Swiss francs. The double-digit sales growth in local currency was the result of the robust global economic growth supported by restocking activities in parts of the portfolio in the first half of the year. Lower idle facility costs, successful price management and lower production costs resulting from the benefits of the restructuring program pushed the gross margin from 23.5 in the year-ago period to 27.9 %.
During the reporting period, Clariant continued to focus on reducing its Selling, General & Administration (SG&A) costs. As a percentage of sales, SG&A costs made further progress and decreased substantially from 17.6 to 16.5 % in comparison to prior year period. As a result of the improved gross margin and the lower cost base, operating income (EBIT) before exceptional items increased to CHF 696 compared to CHF 270 million in the previous year. The corresponding margin rose from 4.1 in 2009 to 9.8 %. This year marked the end of the restructuring program, with all business units contributing to the strong operating profits by reducing their cost levels and optimizing their structures and processes. Restructuring and impairment costs amounted to CHF 331 million, mainly in connection with site closures within the global asset network optimization program (GANO), and a further reduction in headcount. The number of job positions was reduced from 17,536 at year-end 2009 to 16,176. In the reporting period, Clariant returned to a net income of CHF 191 million compared to a net loss of CHF 194 million in the previous year.
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