Stock market 2016
2016 was characterized by a number of political events which triggered significant pressure on the stock markets and hence also on the share price of Clariant. At the beginning of 2016, the Clariant share price mirrored the general market trends, including concerns about the global economic outlook. On the announcement of Full Year 2015 Results, the Clariant shares underperformed the SMI and fell from CHF 16.24 to CHF 15.79 on initial worries over the 2016 outlook. Until 4 March 2016, the Clariant shares rose to CHF 17.22, thereby outperforming the SMI by approximately 7% since the closing on 17 February 2016. In April, the share price declined again as the financial markets became concerned that rising raw material prices could potentially put pressure on margins. With the publication of the first quarter numbers on 28 April 2016 the stock rose by more than 8% on the back of a strong result. In May and June, the downside pressure on the stock markets increased over fears about the Brexit referendum, which also pushed the Clariant shares lower. Overall, the difficult environment in the Oil & Mining and Catalysis industry and its impact on our business overshadowed the good performance of Plastics & Coatings in 2017 and explains the lackluster performance of the share price. The share price moved sideways for several weeks until uncertainties over the outcome of the US elections significantly burdened the stock markets as well as the Clariant share price. Following the elections, the Clariant share price recovered again and closed at CHF 17.57 on 31 December 2016.
Why invest in Clariant?
1. We are a leading Specialty Chemical company.
2. We serve markets with future perspectives and above average growth rates
by offering solutions to the global challenges.
by helping our customers to create more value.
by focusing on the customers’ needs in the different regions build on our innovation and R&D strategy as well as our sustainability offering.
3. We strive for financial excellence.
4. We have long and extensive experience.
Clariant aims to increase or at least maintain dividends. Since 2011, Clariant increased the dividend by an average of 5% per annum. Despite the more difficult economic environment, the continued improvement in performance allows the Board of Directors of Clariant Ltd to propose for the 2016 financial year a dividend distribution of CHF 0.45 per share at the Annual General Meeting on 20 March 2017. This proposal reflects an increase of 12.5% compared to the previous year. The distribution is proposed to be made from the capital contribution reserve that is exempt from Swiss withholding tax.