Clariant reports quarterly profit below market expectations (updated)
08/05/2026 06:14
Adds shares in paragraph 2, CEO comments on Iran war and oil prices in paragraphs 7-9, cost cuts in paragraph 10, tariff refund in paragraph 11 Clariant's Q1 adjusted EBITDA misses consensus War hits demand in profitable Middle East market, drives up costs Oil price could hit $150-$200 per barrel if Strait of Hormuz stays closed until end-2026, CEO says Company expects to get about 15 million francs from tariff refunds this year By Marta Frackowiak May 8 (Reuters) - Swiss speciality chemicals maker Clariant CLN.S reported a lower-than-expected core profit for the first quarter on Friday, as the Iran war impacted demand for its catalysts and drove up production costs. Shares of the company, whose chemicals are used in production of smartphones and electric vehicles, fell 3% in early trading. Adjusted for exceptional items, earnings before interest, taxes, depreciation and amortisation fell 16% to 160.2 million Swiss francs ($205.4 million), slightly below analysts' forecast of 162 million francs in a poll provided on Clariant's website. "The Middle East conflict is mainly impacting our Catalysts customers in the Middle East and Asia, with sales now expected to be below the prior year," CEO Conrad Keijzer said in a press release. Clariant stood by its full-year guidance, but said the war was causing elevated uncertainty and volatility. YEAR-LONG WAR COULD DRIVE OIL TO $150-$200 PER BARREL The U.S.-Israeli war with Iran has disrupted fuel and feedstock markets, pushing up costs for the energy-intensive chemicals sector, widely seen to be among those most exposed to the conflict. The Middle East is also a highly profitable market for Clariant, Keijzer told reporters. The company's base-case scenario assumes the Strait of Hormuz will reopen no later than the end of June, which would support recovery in the catalysts business in the second half of 2026, he said. However, a prolonged closure, lasting through the rest of the year, could drive oil prices as high as $150 or even $200 per barrel, Keijzer warned. To offset rising raw material and energy costs, Clariant has implemented value-based pricing while continuing to cut costs. Key measures under its cost-cutting plan contributed 9 million francs in savings in the first quarter. It also expects to recover roughly 15 million francs paid in U.S. tariffs by the end of 2026, Keijzer said, after the U.S. Supreme Court ruled some of President Donald Trump's levies illegal. ($1 = 0.7798 Swiss francs) (Reporting by Marta Frąckowiak in Gdansk; Editing by Milla Nissi-Prussak) ((marta.frackowiak@thomsonreuters.com))