ESMA Shows Functional Printing Potential At drupa 2016

CHICAGO, Ill. — February 2016 — At drupa 2016, the world’s leading trade fair for print and cross-media solutions, the European Specialist Printing Manufacturers Association (ESMA) will be present in two pavilions. The pavilion in hall 3 (stand A70) will be dedicated to functional and industrial printing with member companies such as SPS demonstrating screen printing equipment used for food decoration (e.g. chocolate) and other special effects achievable at high operation speed. SPS’s partner ATMA will showcase latest developments in machinery for conductive and technical printing. KIWO, the German specialist in stencils, will present printing of pressure sensitive adhesives with high electrical conductivity. A variety of decoration techniques for glass and other rigid materials will be the focus at the ESC booth while another ESMA member, Marabu, will show applications of their inks for touch panels, tablet and smart phone masks. drupa will take place from May 31 – June 10, 2016 at the fairgrounds in Düsseldorf, Germany.

At the ESMA Lounge visitors will get information about the latest projects concerning smart tags, smart sensors, flexible and washable conductive inks used in textile industry and the overall use of various print technologies for Internet of Things. Further innovations will be highlighted in the ESMA pavilion in hall 6 where Color Passport will present their revolutionary approach to color management and reproduction on different substrates. Another expert in color management, ColorGate, will come to drupa with development stations and state-of-the-art RIP technology for industrial printing with inkjet. Intrinsic Materials, a specialist in nano-materials, will show their achievements in conductive inks and printed electronics components applied by the medical industry, such as disposable testers with smart tags.

Functional printing will build the core of the ESMA presence at drupa. In its early days, functional printing relied on chromatic inks which changed color due to external influences such as light (UV/black light), temperature (heat), pH changes or water contact. They were used for applications on printed gadgets, especially packaging which used the distinctive special effects for marketing purposes. The glowing and phosphorescent decoration started years ago and reappears on the market on a continuous basis. More advanced and more functional opportunities have followed and entered new industries. Evolution in conductive inks and electroluminescence (EL) not only benefited branding purposes (e.g. light-emitting packaging of Bombay Sapphire Gin) but delivered solutions also for solar panels (fingers and busbars).

Initial applications have pushed the boundaries of functional printing. Printed circuit boards (PCB) and flexible antennas combining FM, TV, mobile and GPS in one antenna and used for example in automotive, gave rise to car radar systems for adaptive cruise control. Nowadays, near field communication (NFC) and RFID antennas are standard features in electric devices and the integration of printing in the manufacturing process constantly improves their cost-efficiency. As far as electroluminescence is considered, a technological jump took place towards OLED (organic light emitting diodes). Flexible OLEDs integrated in fabric pave the way for smart textiles and wearables, as demonstrated in one of the recent ESMA international projects – POLEOT (Printing of Light Emitting Devices on Textile).

The future of printed electronics, conductive inks and coatings is now wide open. Batteries (flexible, thin, rechargeable), energy harvest systems (based on Peltier effect), smart tags and sensors are becoming common consumable goods, many of them also disposable. Smart wearables and smart sensors increasingly find applications in medical and pharmaceutical sectors, for instance quick test strips for diabetics, blood analyzers and smart blister packs. Healthcare is one of the markets which embrace new solutions and make successful business cases for printers who decided to “go functional” possible. Quad Industries has developed temperature logger labels for blood bags used in transport. The smart tag registers and transmits data to a smartphone app to ensure the correct transport conditions.

When it comes to smartphones, many of its components are facilitated by printing techniques. Capacitive switches, batteries, touch panels and screens – printing once again replaces expensive and highly energy-consuming processes. Marketing departments come on board as well. One of the recent Audi TT brochures included printed controls which, after correctly aligning with the smartphone, turned the page into a controllable experience of the new model’s cockpit display. Functional printing partners with anti-counterfeiting technologies and delivers combinations of inks, coatings and substrates to create invisible markers. Both for monetary needs and luxury goods, security print is the most efficient and cost-attractive protection against counterfeiting. Current possibilities even offer fingerprint recognition surfaces.

Many of these applications are included in the in-mold decoration process, be it for automotive or electronic devices – ranging from the integration of antennas in car mirror caps and in the car console to capacitive buttons on 3D thermoformed parts and surfaces. The industry is growing and provides new, creative development dimensions for printers, manufacturers and product designers. They will all meet for 18 technical talks and business cases presented during the 3rd Advanced Functional and Industrial Printing conference (AFIP) on March 2 and 3, 2016 in the Radisson Blu Scandinavia hotel in Düsseldorf. On March 1, 2016, the CST GmbH invites all attendees for a guided factory tour, showing the company’s involvement with functional printing technology. More information about the event’s program and conditions is available at www.afip2016.org

Posted February 24, 2016

Source: Messe Düsseldorf North America

Blame It On The Weather

Jim-Phillips-colorBy Jim Phillips, Yarn Market Editor

Orders for yarn through the early part of February fell below the expectations of many spinners, causing some to do a deeper dive into the underlying reasons.

“In early January, we attributed most of the slowdown to inventory adjustment,” commented one spinner. “We knew, that with ring-spun yarns being relatively scarce, that a lot of customers had maintained their positions just so they could ensure product was available. Then, at the end of year, they had a lot more yarn on hand that they needed. We were expecting that and we weren’t too concerned.” He continued, “At the first of February, sales had not picked up substantially.  And we began to wonder why.”

The answer? Blame it on the weather. Unseasonably mild temperatures throughout much of the United States through autumn and the early part of winter created a significant reduction in apparel sales. “When it feels like May in New England in the middle of December, winter clothes don’t just fly off the shelves. Apparel was staying on the shelf, and retailers reduced their orders for replacements, which, in turn, caused our orders to fall off.”

November was the warmest month ever recorded. A strong El Nino effect added even more warmth to the United States and Europe. The impact on retail apparel sales was significant. In November alone, department store apparel sales were down 2.8 percent. From November 1 through December 31, research company Planalytics said specialty apparel store sales declined $572 million over the same period the previous year.

The weather-related apparel sales decrease is likely to be short-term. However, apparel manufacturers are concerned over changing consumer buying habits that focus on areas other than clothing.

“It’s an interesting time for apparel,” one expert said in a recent article in the U.S. edition of The Guardian. “Consumers are spending more money on experiences and home goods and autos. They’re getting great deals on sizes and makes of cars, and it’s taking market share from apparel.”

“This is not something any of us expected,” said one industry insider. “Last year, we had a long and cold winter, and I think most of us expected the same this year. We weren’t prepared for it to be 60 degrees in Central Park in December.”

As the weather starts to warm — after all, Punxutawney Phil predicted a quick spring on Groundhog Day — spinners hope to see orders start pouring in again. Yet, even then, there are worries.

“Certainly, there are a lot of variables that could change the whole sales picture for the rest of the year,” said one spinner. “We have been relatively optimistic that we would maintain the solid core of business that we’ve enjoyed over the past few years. But, it all depends on how consumers spend their discretionary income, if they spend it.  Election years always make me nervous, because you never know what to expect from people. Will they like what they hear and be confident about the future? Or will the scare tactics of some politicians make them take a wait-and-see attitude toward spending?

Cotton prices continue to hover around the 60-cents mark. As of February 19, spot quotations for the base quality cotton (color 41, leaf 4, staple 34, mike 35-36 and 43-49, strength 27.0-28.9, uniformity 81.0-81.9) averaged 58.28 cents, up from 58.12 cents the previous week, but down from the 62.80 cents reported during the same period last year. “The stability of cotton prices over the past 18 months has been a strong contributor the prolonged period of good business,” said one spinner. “If we can get over the current blip, I believe we will be moving back in that direction shortly.

YarnChartFeb16Click here to view current yarn prices as a pdf

February 2016

VEIT Group Celebrates Its 60th Anniversary

LANDSBERG AM LECH, Germany — February 23, 2016 — Pioneering developments in ironing technology triggered the rapid growth of the Landsberg-based machine manufacturer in the 1960s and 70s. Today, the medium-sized company is a global player in industrial garment finishing, with business activities in more than 100 countries.

With Günter and Christopher Veit being at the helm of the family-run enterprise, it is the second and third generation who are jointly steering the company in the year of its 60th anniversary. It was their father and grandfather, 90-year-old Reinhardt Veit, who founded the business in 1956 and who used two innovations to set new technological standards for his sector those days. The cold ironing technology he developed turned the formerly stationary units into flexible, stand-alone ironing tables with their own independent motors. Powerful suction made built-in heating units redundant and helped to significantly reduce energy consumption even then. Another novelty was the suction and blowing technology launched in 1969. The use of an air cushion finally allowed ironing garments without any marks from seams and interlinings.

Today’s Group President Günter Veit joined the company as a co-director in 1975, before full responsibility was handed over to him by his father Reinhardt Veit in 1990. It was Günter Veit who expedited international growth with subsidiaries in the USA (1981), France (1990), Romania (1997) and the UK (1999). Ever since 1994, VEIT has been increasingly committed to the Asian market with offices in China, India, Vietnam, Indonesia and Bangladesh.

From VEIT to VEIT Group: Two acquisitions allowed the firm to broaden its product portfolio and its technological range. In 1989, it took over Brisay, a company specialised in ironing presses, and then, in 2001, Veit acquired the fusing technology division from Kannegiesser. Whereas the brand name Brisay continues to exist within the VEIT Group, fusing machines are being sold solely under the VEIT label since the beginning of 2016, fifteen years after the successful takeover.

Christopher Veit joined the company’s top management in 2015 and represents the third generation. The new managing director has been leading the Chinese subsidiary VEIT Zhejiang since 2011. At VEIT Group, he is now in charge of Human Resources, Design and Development, Quality Assurance and Manufacturing. Both he and his father Günter Veit are aware of future challenges. Expanding their business facilities in Germany is one of the goals both Directors share.

“We are delighted to be able to celebrate our company’s 60th anniversary this year and are thankful for the past. At the same time, we are looking ahead to the future with a spirit of confidence and motivation. We are particularly grateful to our employees, customers and VEIT supporters, who have joined us on our journey and keep doing so!“ emphasize Christopher and Günter Veit. „We are convinced that we will continue our successful path by working together to enhance our existing strengths and to put our customers‘ benefits into the focus of our operations.”

Posted February 23, 2016

Source: VEIT GmbH

Smart Socks To Revolutionize Diabetic Care

NOTTINGHAM, United Kingdom — February 22, 2016 — Doctors will be able to remotely monitor diabetic people for a potentially life threatening condition thanks to the development of socks which measure foot temperature.

Research by Nottingham Trent University, in collaboration with Copenhagen/San Francisco-based Siren Care, has led to the development of electronic smart socks which inform users of the early signs of diabetic foot ulcers.

The technology, developed by a team led by Professor Tilak Dias, from the university’s School of Art & Design, can continuously measure the temperature of a patient’s feet and relay the data live to the accompanying Siren app.

The aim is to give advanced warning of when users may be about to develop an ulcer, allowing them to prevent the onset of the ulcer and learn to adjust their behaviour based on the feedback.

Professor Dias, who leads the university’s Advanced Textiles Research Group, said: “It’s essential that diabetic foot ulcers are identified and treated as quickly  as possible before they increasingly damage a person’s health.

“By combining electronic sensors with fibres in a yarn, we’re able to spot the first signs of ulcers remotely, giving advanced warning of when they occur and potentially helping sufferers avoid the development of a very serious condition.”

People with diabetes can have reduced nerve function due to peripheral diabetic neuropathy, and are prone to frequent and often severe foot problems with a relatively high risk of infection, gangrene and amputation. A temperature difference between the two feet can be one of the first signs of an ulcer forming.

The Siren Smart Sock System works by measuring temperature with thermistors that are less than an third of a millimetre long. Encapsulated in water-resistant resin pods, they are embedded into the yarns of the socks and are too tiny to be felt by the wearer.

Connected by conductive filaments to a custom-made Bluetooth device developed by Siren Care, the socks communicate the temperature data via the patient’s smartphone to a doctor’s computer.

Ran Ma, chief executive officer of Siren Care, said: “Foot ulcers are especially dangerous to diabetics due to the nerve damage and circulation problems that diabetics often suffer from.

“Not only are diabetics unable to feel when they have damaged their feet, this damage can become severe due to the inability of the wound to heal, leading to a limb lost to diabetes every 30 seconds around the world.

“Clinical trials have shown that temperature monitoring can prevent diabetic foot ulcers up to 72 per cent. A temperature sensing sock, which will provide the diabetic patient and their support structure with early warning system for foot ulcers, is easy to use and will fit seamlessly into their lives.”

Researcher Pasindu Lugoda, who developed the temperature sensor technology as part of his PhD, said: “What’s special about our design is that the socks are fully washable and wearable. For all intents and purposes, it’s like you’re wearing an ordinary pair of socks. But in actual fact you’re wearing a sophisticated piece of technology which is monitoring your health and relaying live information to your doctor.”

Posted February 23, 2016

Source: Nottingham Trent University

ArcGuard® ACTIVECombines Comfort, Performance & HRC 4 Protection Simplify Safety With Our Selection Of ArcGuard® Suits

CLEVELAND — February 23, 2016 — National Safety Apparel is pleased to bring to you the newest addition to our ArcGuard® arc flash PPE line, ArcGuard ACTIVE 40 cal/cm2 suit.

The ArcGuard ACTIVE line is made from a high performance lightweight flame resistant and arc rated fabric which allows for a greater amount of flexibility and stretch.  ArcGuard ACTIVE was built for comfort and protection when worn over every day work wear. Made with a tagless collar, exterior labeling, and moisture wicking properties are just a few more features these 40 cal arc flash garments have to offer.

The new ArcGuard ACTIVE suit will also be offered in an arc flash kit making protection even more convenient. Kits are available with and without gloves and include ArcGuard ACTIVE 40 cal/cm2 Jacket and Pant, ArcGuard Compliance™ Hood with Hard Hat, Class 2 Rubber Voltage Gloves, 12” Leather Glove Protectors, Safety Glasses, Glove Bag, Faceshield Bag and a large gear bag to store all your essentials. Both the suit and kits are NFPA 70E-2015 Compliant for Arc Flash, and meet OSHA 1910.269 and ASTM F1506-10a.

Innovating new safety gear to meet the needs of customers and the industries they serve, while providing the newest technology is what National Safety Apparel does best.

Posted February 23, 2016

Source: National Safety Apparel 

AUTEFA Solutions Customized Concepts And Service For Complete Needlepunch Line

FRIEDBERG, Germany — February 19, 2016 — The sales teams of AUTEFA Solutions combines experts of the former companies Fehrer, F.O.R, AUTEFA and Strahm. The IDEA show is the perfect place to present the economic and technical advantages of AUTEFA Solutions as a full line supplier for needlepunch nonwoven lines.

AUTEFA Solutions needlepunch lines meet customers’ requirements for quality web formation, bonding, active weight regulation, and minimal maintenance requirements. AUTEFA Solutions delivers turnkey nonwoven lines including opening and blending, chute feed, carding, crosslapping, needlepunching, drafting, and winding. With AUTEFA Solutions complete line performance equipment the company offers a solution for every customer.

Marco Fano, CEO AUTEFA Solutions, explained:” Customers expect more technological support, a perfect spare part service and a solution for the cumbersome and expensive needle exchange. The performance of the needle loom increases once the needle loom will be not considered as a stand‐ alone machine.”

The combination of the crosslapper and a needle machine, monitored by a “closed loop control” leads to higher fabric quality. In many staple fiber and nonwoven lines, the crosslapper is important for determining quality. Using the crosslapper from the ‘Topliner’ series, combined with the profiling system and the additional WebMAX equipment, prevents the increased weight of the fabric in the edge areas, called the ‘smile effect’. This results in an excellent uniformity in the fabric and, thanks to a considerable saving of materials, a lasting reduction in material costs.

Automatic Needle Exchange — without manual intervention

With the Automatic Needle Exchanger 2.0 AUTEFA Solutions has a unique service machines for every needle loom. The Needle Exchanger enables a fully automatic process of needle rotation and exchange without manual intervention.

The machine exchanges single, all, or user defined segments of needles. The Automatic Needle Exchanger 2.0 offers an unprecedented level of needle management. The machine fits into every service workshop and increases efficiency and economics. Some of the key figures are an operating speed of up to 1,500 needles/h and a needle magazine for more than 10,000 needles. For removing and setting of needles no direct involvement of operating personnel is necessary.

Nonwoven Card Web Master FUTURA‐ best access for cleaning and maintenance

Customer demands are driving AUTEFA Solutions new developments in nonwoven cards. The Web Master FUTURA card is specially developed and designed for high production speeds, tailored to the worldwide requirements for Nonwoven Lines.

The focus of the new card Web Master FUTURA is to improve maintenance. AUTEFA Solutions therefore completely reworked the Easy Opening System. The system is placed on high precision linear bearings, so after closing all rollers are exactly in the same position like before. The different parts of the card, means feeding group, first main cylinder, transfer group and doffers, are each placed on a separate carriage. The carriages are connected to each other by one screw on each side forming a “train” allowing easy and full access for cleaning and maintenance.

AUTEFA Solutions united the former companies AUTEFA, Fehrer, F.O.R and Strahm. The product range includes fiber preparation machines, nonwovens cards as well as aerodynamic web forming machines (Airlay), crosslappers and needle looms for mechanical bonding.

With AUTEFA Solutions Switzerland (former Strahm Hi‐Tech) the company expanded and offers equipment for thermobonding, drying as well as cutting, slitting, winding and festooning. AUTEFA Solutions is an international machine manufacturing group with locations in Europe, USA and China. AUTEFA Solutions is part of China Hi‐Tech Group Corporation (CHTC).

Posted February 22, 2016

Source: AUTEFA Solutions Germany

Lindauer DORNIER GmbH At The JEC In Paris from 8 to 10 March 2016

LINDAU, Germany — February 22, 2016 — Woven textile semi-finished products for glass, aramid, basalt and carbon fiber composites mainly help to reduce moving masses and therefore the CO2 emissions. These exceptional efficient high-precision fabrics are more and more used in aviation and aerospace but also in mechanical engineering, construction and architecture.

Lindauer DORNIER, by focussing its core competencies under the label of “DORNIER Composite Systems®“ make a valuable contribution to the business. Based on the know-how of fiber handling and the application of thermoplastic materials the company offers efficient manufacturing processes for these high-performance materials.

Weaving per se is a digital manufacturing process. The position of the thread is clearly defined any time in the process and can be documented. Hence, this technique is a pathfinder for “Digital Engineering“. This characteristic in combination with a superb reliability and reproducibility in industrial production ambience are prerequisites for its use in highly complex fiber composite components. Fixation or impregnation with thermoplastic matrix materials complete the required process chain.

It is not surprising that DORNIER weaving machines are the reference for the processing of carbon fibers for more than 40 years. The first commercial CFRP components were produced with fabrics made on DORNIER weaving machines.
This trend has continued since. Just one of the reasons is the multitude of further developments of the DORNIER weaving machine system family comprising rapier and air-jet weaving machines as well as special machines for processing of various technical yarns. Thanks to the modular design system the machine concepts are specifically tailor-made to customers’ needs and requirements.

Lindauer DORNIER GmbH, technological market leader for weaving systems for technical fabrics and manufacturer of film stretching lines, operates two production sites with approx. 1,000 employees in Southern Germany. In order to retain as great a lead as possible in the textile and plastics industries, approximately 8-percent of the annual turnover is spent for research and develop- ment. This, in addition to creative engineering work, thorough knowledge of technological context and customer proximity contributes largely to the outstanding position of the family-owned company.

Three types of weaving machines are offered especially for the production of fabrics for composite technology: The DORNIER rapier weaving machine with a positive controlled center transfer, a rapier weaving machine for 3D structures with the new, specifically developed horizontal take-off for multilayer fabrics as well as a tape weaving machine.
A tape production line for the application-specific production of thermoplastically fixed or consolidated tapes complements this range of products. The know-how gained in plant engineering facilitates the integration of all components and processes to a consistent production line.

A tailor-made DORNIER production plant or a DORNIER weaving machine – machines “Made in Germany“ – help to open up potentials of modern textile manufacturing technologies for the production of high-performance fiber composite structures.

DORNIER Technology Days

Within the framework of the DORNIER Technology Days, prolonged to March 2016, customers and interested persons have the opportunity to see different weaving machines as well as innovative processes in Lindau and to discuss customized solutions and specific applications.

In our Technology Center the following products are exhibited:

  • Jacquard weaving line for 3D structures with horizontal take-off
  • Tape weaving machine
  • A tape production line for the application-specific production of thermoplastically fixed or consolidated tapes
  • Special applications of the DORNIER Open Reed Weave (ORW) technology in the technical textile sector (multiaxial fabrics with local reinforcement)

Our specialists are pleased to inform you about our latest developments and technologies at stand B47 in hall 6.

Posted February 22, 2016

Source: Lindauer DORNIER GmbH

Motion Industries Announces Agreement To Acquire Epperson And Co.

BIRMINGHAM, Ala. — February 22, 2016 — Motion Industries Inc., a wholly owned subsidiary of Genuine Parts Co., has entered into a definitive agreement whereby Motion Industries has agreed to acquire Epperson and Co., an industrial distributor specializing in material handling products and services since 1932. Execution of the transaction is expected to take place March 1, 2016.

A leading supplier of bulk material conveying products and services in the Southeast, Epperson and Company is headquartered in Tampa, Florida, with full service locations in Jacksonville and Miami. Offerings include conveyor-related products such as belting, idlers and pulleys, as well as services such as system installation and removal, belting splicing and installation, idler replacement and other maintenance projects.

Epperson and Company also places high emphasis on conveyor safety; its employees take the required safety certifications and encourage best safety practices in customer facilities as well as in their own.

Jimmy Abbitt, Epperson’s President, said, “We are pleased and excited about joining forces with Motion Industries and look forward to the opportunities that this brings for our people. The nice fit for both companies in the Florida market was key to our decision, and we are optimistic about the future.”

“We are very excited to leverage Epperson’s material handling expertise to better serve our customers, not only in the Southeast but from coast to coast,” said Tony Cefalu, Motion’s Senior Vice President of Hose & Rubber, Shops and Service Centers.

Tim Breen, Motion’s President and CEO, added, “We welcome all Epperson employees to the Motion family, and look forward to the positive impact they will make on our overall business.”

With annual sales of $4.6 billion, Motion Industries is a leading industrial parts distributor of bearings, mechanical power transmission, electrical and industrial automation, hydraulic and industrial hose, hydraulic and pneumatic components, industrial products, safety products, and material handling. Motion Industries has over 550 operations including 15 distribution centers throughout North America and serves more than 150,000 customers from the food and beverage, pulp and paper, iron and steel, chemical, mining and aggregate, petrochemical, automotive, wood and lumber, and pharmaceutical industries.

Posted February 22, 2016

Source: Motion Industries

American Fiber Manufacturers Association Endorses Trans-Pacific Partnership

ARLINGTON, Va. — February 17, 2016 — At the winter meeting of its Board of Directors in Tampa, FL, the American Fiber Manufacturers Association (AFMA) voted to formally support the Trans- Pacific Partnership (TPP) free trade agreement. The final TPP text had been signed at a meeting in Auckland, New Zealand, on February 4, 2016, by the United States and eleven other countries.

AFMA’s Board recognized the special care given to fiber producer’s analysis and advice by United States Trade Representative Michael Froman and his team across more than five years of intense and complicated multi-country negotiations. “Inclusion in the final TPP text of the yarn-forward textile rule of origin so critical to U.S. fiber and yarn producers underpins our endorsement” stated AFMA Chairman William McCrary, Jr. at the conclusion of the Association’s Board meeting. He added “. . . this important trade provision is now intact in U.S. free trade agreements with over twenty countries, a consistent outcome that assures an integrity in U.S trade policy so important to America’s manufactured fiber producers, workers, and communities”.

The AFMA Board took note of the recent TPP endorsement by the National Council of Textile Organizations (NCTO). AFMA and its members will continue to work with NCTO in the pursuit of public policies important to the success and prosperity of the entire American textile supply chain.

Posted February 18, 2016

Source: AFMA

Clariant Significantly Improves Cash Flow And For The 7th Consecutive Year Increases Margins

MUTTENZ, Switzerland — February 17, 2016 — Clariant, a producer of specialty chemicals, announced full-year 2015 sales of CHF 5.807 billion compared to CHF 6.116 billion in 2014. This corresponds to a 3-percent growth in local currencies mainly driven by higher volumes. Due to the strong currency headwind, sales in Swiss francs decreased by 5 percent.

Growth in the Americas was good, with sales in local currencies up 19 % in Latin America and 4 percent in North America. Europe was 1 percent lower in local currencies impacted by a weaker end-market demand.

Lower growth came from the regions Asia/Pacific and Middle East & Africa. Sales in Asia/Pacific decreased by 1 percent in local currencies and were affected by a weak demand in China, which could not be compensated by the stronger demand of smaller economies in Asia. In the Middle East & Africa region, sales were down 6 percent year-on-year in local currencies.

The improved business performance stemmed primarily from higher growth in the Business Areas Care Chemicals, Catalysis and Natural Resources. In Care Chemicals sales in local currencies were up 4 percent, reaching CHF 1.445 billion. Adjusted for the portfolio change, on a like-for-like basis, growth in local currency was 6 percent year-on-year.

Sales in Catalysis rose by 4 percent in local currencies to CHF 704 million fueled by strong growth in Petrochemicals and Syngas. Sales growth year-on-year was impacted by the divestment of the Energy Storage business in February 2015. On a like-for-like basis sales in Catalysis have grown by 7 percent versus the previous year.

Despite the difficult market environment, sales in Natural Resources grew by 4 percent in local currencies reaching sales of CHF 1.217 billion primarily driven by the Oil and Mining Services business.

In Plastics & Coatings, sales in local currencies grew slightly by 1 percent to CHF 2.441 billion, despite the very challenging environment in Pigments resulting from the weak demand in Europe and China.

The gross margin of 30.8 percent was above the previous year’s level of 29.0 percent, benefiting from a positive mix effect, lower raw material costs and reclassification of costs to SG&A.

The EBITDA before exceptional items from continuing operations reached CHF 853 million up 8 percent in local currencies year-on-year resulting from a favorable volume mix.

The EBITDA b.e.i. margin increased to 14.7 percent by 50 basis points above the previous year’s level. The margin expansion came predominantly from the Business Areas Care Chemicals, Catalysis, as well as Natural Resources, which all significantly increased the EBITDA margins throughout 2015 compared to the previous year. In Plastics & Coatings, margins decreased due to the increasing challenging markets especially in Pigments throughout 2015.

Net income from continuing operations amounted to CHF 227 million comparable to CHF 235 million in the previous year. The lower tax expense could offset the higher financial costs as well as the lower gains from divestments versus 2014. The tax rate in 2015 was 24.3 percent, significantly lower than the previous year.

Operating cash flow rose significantly to CHF 502 million versus CHF 334 million year-on-year stemming from a sustainable net working capital management.

Net debt at CHF 1.312 billion was slightly higher compared to the CHF 1.263 billion recorded at year-end 2014.

Despite the more difficult economic environment as well as the significant appreciation of the Swiss franc, the solid performance allows the board of directors to propose to the Annual General Meeting a dividend of CHF 0.40 per share at the same level as in the previous year following an 11 percent dividend increase the year earlier. The distribution is proposed to be made from the capital contribution reserve that is exempt from Swiss withholding tax.

Fourth quarter 2015 – More margin expansion
In the fourth quarter of 2015, Clariant sales grew by 4 percent in local currency to CHF 1.526 billion. Due to the strong currency headwind, sales decreased by 4 % in Swiss francs. Volumes were up 4 percent compared to the previous year period.

In the fourth quarter, growth stemmed from the higher growth business areas, primarily Catalysis and Natural Resources. Care Chemicals reported sales of CHF 370 million up only 3 percent in local currencies impacted by a very weak de-icing business due to the mild weather in the fourth quarter. Catalysis sales in local currencies grew by 6 percent to CHF 241 million versus the previous year period. Sales in the Natural Resources Business Area were up 7 percent in local currencies to CHF 329 million, and sales in Plastics & Coatings were CHF 586 million, an increase of 3 percent in local currencies.

On a regional level, Latin America achieved double-digit growth in local currencies of 19 percent. North America increased sales by 2 percent in local currency, Europe was up 1 % in local currency, while Asia was down 1 percent versus the previous year.

The gross margin was higher year-on-year, at 30 percent compared to 28.8 percent thanks to a better mix effect, lower raw material costs and reclassification of costs to SG&A. The EBITDA margin before exceptional items expanded to 15.0 percent from 14.6 percent in the fourth quarter of 2014 primarily driven by Catalysis and Natural Resources.

Net income from continuing operations was CHF 24 million. This is above the previous year figure on a like-for-like basis adjusting for the one-time book gain from disposals relating to land sales in India in Q4 2014.

Operating cash flow amounted to CHF 306 million, compared to CHF 321 million year-on-year.

Outlook 2016 – to progress EBITDA margin and operating cash flow
Despite the difficult environment in 2015, Clariant could demonstrate its ability to sustainably improve its business performance by continuously launching new innovative products and solutions particularly in its higher margin Business Areas Care Chemicals, Catalysis and Natural Resources.

Clariant expects the uncertain environment, characterized by a high volatility in commodity prices and currencies, to further deteriorate. In emerging markets, we anticipate the economic environment to become more challenging and with increased volatility; we expect moderate growth in the United States, while growth in Europe is expected to remain stable but weak.

For 2016, in spite of the increasingly challenging economic environment, Clariant is confident to achieve growth in local currencies, as well as progression in operating cash flow and EBITDA margin before exceptional items.

Clariant confirms its mid-term target of reaching a position in the top tier of the specialty chemicals industry. This corresponds to an EBITDA margin before exceptional items in the range of 16-19 percent and a return on invested capital (ROIC) above the peer group average.

“Despite the challenging economic environment throughout the year, we continued to improve our performance again and have shown resilience,” said CEO Hariolf Kottmann. “Clariant has significantly improved its cash flow and expanded its EBITDA margin on the back of a good performance of the Business Areas Care Chemicals, Catalysis and Natural Resources. With this positive development we have been able to offset the negative impact of the stronger Swiss franc and deliver a net result comparable to 2014. For 2016, in spite of the economic environment anticipated to become even more demanding, we want to further progress in profitability and cash flow generation by continuously launching new innovative solutions particularly in our higher margin Business Areas.”

Posted February 18, 2016

Source: Clariant

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