Clariant raises sales guidance after Q3 profit beats forecasts

ZURICH (Reuters) - Clariant raised its annual sales guidance on Thursday, after reporting a better-than-expected core profit for the third quarter as the Swiss specialty chemicals maker passed on price increases to clients and raw material costs eased.

Earnings before interest, tax, depreciation and amortisation increased 29% to 220 million Swiss francs ($223.15 million), the company said, beating forecasts for 199 million by analysts in a company-gathered consensus.

Sales increased 20% to 1.31 billion francs, beating the 1.24 billion francs forecast. In local currencies, the increase was 27%.

The company, whose chemicals are used in personal and home care products, said it now expected sales of 5.1 billion francs, up from 5 billion francs in its earlier outlook. It also confirmed its aim to improve the year-on-year underlying group EBITDA margin level.

"Our performance in the third quarter was, as anticipated, fuelled by sustained pricing amidst a moderate sequential decline in raw material costs," said Chief Executive Conrad Keijzer.

Rising energy and raw material prices have been a problem for industrial companies in recent months, on top of jammed supply chains, which have made it difficult and expensive for them to get hold of vital components.

($1 = 0.9859 Swiss francs)

(Reporting by John Revill; Editing by Muralikumar Anantharaman and Subhranshu Sahu)