Clariant lags core profit forecast as Iran war weighs, but says the hit is easing

By Marta Frackowiak and Cian Muenster

Nov 3 (Reuters) - Speciality chemicals maker Clariant reported a weaker-than-expected quarterly core profit on Tuesday, sending its shares 2% lower, as volumes in its Catalysts business continued to be hurt by the Iran war.

The Swiss company is disproportionately affected by the conflict due to the Catalysts unit's large Middle East exposure, CEO Conrad Keijzer told journalists, reiterating his comments from July. The region makes up 10% of Clariant's revenue.

Its adjusted earnings before interest, taxes, depreciation and amortisation fell 6.5% from a year ago to 151.5 million Swiss francs ($185 million), missing analysts' 159 million franc forecast provided by the company.

"Care Chemicals and Adsorbents & Additives recorded pricing-led growth, while Catalysts' volumes remained impacted by the Middle East conflict," Keijzer said in the earnings statement.

Clariant has benefited from the Middle East-related supply disruptions less than some European chemical peers, because customers operating at high utilisation rates delayed catalyst refill orders, while some clients remained under force majeure, he added during a press call.

However, the 1.9% volume drop in Catalysts was much smaller than the 14.2% decline seen in the second quarter.

Demand is slowly recovering, but the rebound remains fragile as growth in sectors such as defence and data centres has yet to translate into a broader recovery in chemicals demand, Keijzer said.

Clariant maintained its 2026 outlook, citing a strong fourth-quarter order book, particularly in Catalysts, and continued progress on its cost-cutting programme.

Keijzer said fourth-quarter Catalysts revenue should be as strong as last year. "In terms of mix, if we look at the order book right now, it should even be positive relative to the prior year," he added.

COST SAVINGS ON TRACK

Clariant, whose chemicals are used in production of smartphones and electric vehicles, said it recorded 10 million francs in annualised cost savings in the third quarter.

That brought year-to-date savings to 79 million francs, keeping Clariant on track to reach 90 million francs by the end of 2026. The savings came from job cuts, procurement measures and site rationalisation, which helped offset inflationary pressures.

Chief Financial Officer Oliver Rittgen told journalists that 700 positions were affected by layoffs.

($1 = 0.8180 Swiss francs)

(Reporting by Marta Frąckowiak and Cian Münster in Gdansk; Editing by Anna Pruchnicka and Milla Nissi-Prussak)