0H9V Db X-tr Ii Gl Inf Linked Bd Ucits E

 
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Clariant Adjusts Structure to Economic Downturn and Commences Further 
Restructuring 
*         Sales of CHF 8.1 billion in 2008, up 1% in local currencies 
*         2008 Operating Income and Cash Flow from Operations in-line 
  with guidance 
*         Clariant prepares for further restructuring in 2009, takes 
  an impairment of approx. CHF 180 million and proposes not to pay a 
  dividend 
 
Muttenz, January 27, 2009 - Clariant, a world leader in specialty 
chemicals, today announced sales of CHF 8.1 billion for the Full Year 
2008 compared to CHF 8.5 billion in 2007. This translates into a 1% 
growth in local currency and a 5% decline in CHF. Full year guidance 
on EBIT and Cash Flow was met with an operating margin before 
exceptionals in the range of 6.5% to 6.8% and a cash flow from 
operations of approximately CHF 400 million. These unaudited results 
allowed Clariant to further strengthen its balance sheet and reduce 
its net debt by the end of 2008. 
 
Clariant went through two distinct phases during fiscal year 2008. In 
the first nine months, the company continued to benefit from the 
then-stable economic environment. The focus on improving operational 
performance and restructuring paid off. In the fourth quarter, 
Clariant was significantly impacted by an unprecedented decline in 
global economic activity. The demand in some of Clariant's customer 
industries such as textile, leather, automotive and construction 
decreased dramatically in line with the overall development of the 
world economy. Other markets such as agrochemicals, oil services or 
de-icing showed resilience against the downturn. 
 
As a result of the deterioration of the leather and textile markets 
and their uncertain evolution in 2009, Clariant revised the plans for 
these two businesses, which led to an impairment of approximately CHF 
180 million to be booked in Q4, 2008. 
 
Clariant has reacted immediately to the unfavorable demand 
development by slowing or shutting down production in the businesses 
that have been impacted, using instruments such as releasing 
temporary workforce, reducing overtime, compulsory holiday periods 
and short time work. 
 
Going forward, Clariant will adapt its structures to the economic 
situation and by the same token address the performance gap towards 
its peers by decisively downsizing the company and reducing 
expenditure - in particular SG&A costs. Clariant plans to 
substantially decrease personnel costs and as a first step reduce an 
additional thousand job positions mainly in the SG&A area. This is in 
addition to the approximately 2,200 headcount reduction announced in 
2006 and almost completed by the end of 2008. The clear focus in 2009 
will be on cash generation. 
 
In line with this focus on cash generation, the Board of Directors 
will recommend to Clariant's 14th General Assembly on April 2 not to 
pay dividends, grants and other shareholder payouts for 2008. 
 
Details on Clariant's audited Full Year 2008 results and 
restructuring measures will be released on February 17. 
 
- end - 
 
Contacts 
 
 
Media Relations 
Arnd Wagner          Phone +41 61 469 61 58 
Investor Relations 
Ulrich Steiner       Phone +41 61 469 67 45 
 
 
 
Clariant - Exactly your chemistry. 
 
Clariant is a global leader in the field of specialty chemicals. 
Strong business relationships, commitment to outstanding service and 
wide-ranging application know-how make Clariant a preferred partner 
for its customers. 
 
Clariant, which is represented on five continents with over 100 group 
companies, employs around 20,000 people. Headquartered in Muttenz 
near Basel, Switzerland, it generated sales of CHF 8.1 billion in 
2008. Clariant's businesses are organized in four divisions: Textile, 
Leather & Paper Chemicals, Pigments & Additives, Masterbatches and 
Functional Chemicals. 
 
Clariant is committed to sustainable growth springing from its own 
innovative strength. Clariant's innovative products play a key role 
in its customers' manufacturing and treatment processes or else add 
value to their end products. The company's success is based on the 
know-how of its people and their ability to identify new customer 
needs at an early stage and to work together with customers to 
develop innovative, efficient solutions. 
 
www.clariant.com 
 
=--END OF MESSAGE--- 
 
 
 
 
This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement. 
 

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