(Reuters) -Swiss specialty chemicals maker Clariant flagged slowing consumer spending after it posted a stronger-than-expected second-quarter operating profit on Thursday, on solid performance in its catalysts and additives business.
The company’s adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, rose 3% year-on-year to 169 million Swiss francs ($208.05 million) in the quarter, above analysts’ forecast of 164 million francs in a company-provided poll.
CEO Conrad Keijzer said quarterly performance was further supported by the successful execution of the company’s savings program.
Clariant still expects a moderation in general inflation for the year, but does not see a significant economic recovery amid persistent macroeconomic challenges, which include potential trade tensions and tariffs.
Chief Financial Officer Bill Collins said during a press call that there is clearly a slowdown in consumer spending, which could continue throughout the remainder of the year.
“The company cannot escape difficult markets and needs positive market trends for better results, which are not visible,” Vontobel analyst Sibylle Bischofberger said in a note.
The company said the direct impact of the tariff dispute on its performance should be manageable, but at the same time warned that global demand could be affected.
CEO Keijzer said during a press call that the direct tariff impact, on an annualized basis, is 25 million francs, and the company is confident that it can pass this on to the U.S. consumer, so that there is no impact on its margins.
Keijzer said 70% of its products are made locally in the U.S.
The company, whose chemicals are used in the production of smartphones and electric vehicles, confirmed its profit margin guidance for 2025 at 17%–18%, but lowered its local currency sales growth expectation to 1%–3%, reflecting the continued uncertainty in its end markets.
In April, Clariant said it saw local currency sales growth at the bottom end of the 3%–5% range.
J.P.Morgan said that Clariant’s updated guidance is 1% to 2% ahead of consensus, “which is a rarity in the sector given the current environment”.
The firm reiterated its medium-term targets would be achieved by 2027 at the latest.
Its shares were down about 1.7% in early trade, but flattened by 0720 GMT.
($1 = 0.8123 Swiss francs)
(Reporting by Marta Frąckowiak in Gdansk; Editing by Nivedita Bhattacharjee and Mrigank Dhaniwala)
