Clariant suffers US$17.2 million quarterly loss but shares soar

14th February 2008, Comments 0 comments

Specialty chemicals company Clariant AG on Thursday reported fourth-quarter net losses of CHF19 million because of higher restructuring costs, but shares soared as the results beat expectations.

14 February 2008

MUTTENZ - Specialty chemicals company Clariant AG on Thursday reported fourth-quarter net losses of CHF19 million because of higher restructuring costs, but shares soared as the results beat expectations.

The bottom line for the manufacturer of chemical ingredients for products ranging from textiles to cosmetics was hit by a CHF113 million restructuring charge.

That charge was five times more than during the same quarter in 2006, when the company only had a net loss of CHF2 million.

Still, the results beat analyst expectations of a CHF37 million net loss for the quarter.

Sales for the three-month period rose 5% to CHF2.09 billion francs.

Shares jumped 9.9% to CHF9.24 in Zurich.

"I wouldn't be surprised if the share goes up even further," said Helvea analyst Martin Flueckiger.

[Copyright ap 2008]

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