Clariant on Thursday confirmed its 2016 outlook and said it was confident its profit margin will continue to rise over the course of the year despite challenging markets.
The Swiss chemical maker's adjusted earnings before interest, tax, depreciation and amortisation advanced 11 percent to 229 million Swiss francs ($236.4 million), beating the Reuters poll average of 206 million francs and improving its adjusted EBITDA margin to 15.5 percent.
The margin is up from 14.1 percent in the first quarter a year ago.
First-quarter sales rose 1 percent to 1.48 billion francs, the company said in a statement, just above the Reuters poll average of 1.455 billion francs.
Its shares were seen rising 2.5 percent, according to premarket indicators provided by Bank Julius Baer.
Clariant has balanced slowing business in Asia and with oil and mining customers with growth in its Latin and North American markets. Stronger revenue was driven primarily by units that make plastics and coatings, as well as so-called "care chemicals" that go into laundry detergents, fabric softeners, disinfectants and skin and hair care cosmetics.
"In spite of the increasingly challenging economic environment, Clariant is confident to achieve growth in local currencies, as well as progression in operating cash flow and EBITDA margin before exceptional items," it said.
It confirmed its mid-term adjusted EBITDA margin target of 16 percent to 19 percent. ($1 = 0.9686 Swiss francs).
Source : reuters.com