0H9V Db X-tr Ii Gl Inf Linked Bd Ucits E

    3rd Quarter Results
             



Clariant Improves Operating Margin

  * Solid performance in the first nine months

       * Sales up 5% in local currency
       * Price increases of 6% compensate for a 15% increase in raw
         material costs
       * Operating margin before exceptionals rises to 7.7% from 6.5%
         in the first nine months of 2007
       * Cash flow from operations at CHF 174 million
       * Solid debt maturity profile and liquidity position

  * Full-year outlook confirmed

       * Full-year operating margin above 2007 - expected between
         6.5% and 6.8%
       * Continuing strong operating cash flow

  * Clariant will further increase profitability and respond to the
    expected negative macroeconomic environment by accelerating
    restructuring and focusing on operational excellence


CEO Hariolf Kottmann commented: "Clariant has been able to improve
its operational performance in a difficult macroeconomic environment
by decreasing costs and  increasing prices. We have built the
momentum to achieve our 2008 outlook."

Muttenz, November 4, 2008 -  Clariant, a world leader in specialty
chemicals, today announced a 5% increase in sales in local currency.
Sales in CHF declined 2% due to adverse currency effects and amounted
to CHF 6.3 billion compared to CHF 6.4 billion in the previous year.
Towards the end of the reporting period, volume growth was challenged
by weaker demand in some businesses and regions that was compensated
for by higher selling prices.

Clariant increased prices by 6%, offsetting a 15% increase in raw
material costs in the first three quarters. The favorable gross
margin development of recent quarters continued, demonstrated by an
improvement of 0.4 percentage points compared to Full Year 2007. On a
year-on-year basis the gross margin remained stable at 29.6%.

The operating margin before exceptionals reached 7.7%, compared to
6.5% in the first nine months of 2007, mainly due to systematic
reduction of SG&A costs that declined to 20.2% from 20.9% on a
year-on-year basis. Operating income before exceptionals amounted to
CHF 488 million. As a consequence of increased raw material costs,
inventories had to be revaluated which had a favorable impact on
gross income and operating income of roughly CHF 30 million. Adverse
currency effects had a negative impact of approximately CHF 70
million on operating income. Net income rose to CHF 170 million
compared to CHF 22 million in the previous year.

Cash flow from operations has developed favorably in recent months
and reached CHF 174 million from CHF 27 million in the first half of
2008. It is however still impacted by inventory build-up as a result
of supply shortages of some chemical feedstock as well as by the
revaluation of inventory. Hence the cash flow was CHF 146 million
lower than previous year.

Clariant has favorable debt maturity profile and solid liquidity
position

The company's debt maturity profile is excellent. The group does not
face maturities in the capital markets (bonds, certificates of
indebtedness) for the next three years until 2011 as it has
refinanced all mid- and long term needs at favorable conditions
between April 2006 and July 2008.

Clariant's liquidity position remains very solid. Local rollover
loans - almost all of them net working capital financings - are well
diversified based on a large number of banks worldwide. The absolute
volume of short-term financings remains at low levels, also seen in
the historic context, and the available headroom under existing
committed and uncommitted credit facilities exceeds CHF 1 billion.

Restructuring according to plan with further measures to come to
address macroeconomic downturn

Restructuring and impairment expenses amounted to CHF 113 million.
The activities to reduce SG&A costs as well as the production site
closures that were announced previously - namely in Horsforth,
Coventry, Selby and Naucalpan - proceeded as planned.

Looking forward the global macroeconomic downturn will adversely
impact the demand for Clariant's products and affect top-line growth.
At the same time the company has to put all efforts into improving
its mid- and long term competitiveness against its peers by placing
the progress made in operational excellence on a sustainable
platform. Hence restructuring will be accelerated and operational
excellence will be improved using a stringent six sigma approach.
Clariant will put an even stronger focus on cash generation.

Divisions maintained strong focus on prices

The decisive 'price over volume' approach as well as a strong focus
on lowering SG&A costs in all four divisions has been the main reason
for the improvement of Clariant's operational performance.

Pigments & Additives Division has good profitability

Pigments & Additives grew 6% in local currency (-1% in CHF). The
division had excellent growth in Asia, Latin America and the Middle
East driven by strong demand and could withstand the continuously
weak demand in the US and the decline in Europe by market share
gains. The Coatings Business was the main driver for the favorable
top-line development whereas the Base Products and the Plastics
Businesses were slightly impacted by declining demand In the third
quarter however only the Specialty Business Unit could resist the
unfavorable demand development.

The division gross margin remained stable compared to the previous
year, whereas the operating margin significantly increased. The
negative impact of currency effects on EBIT were more than offset by
the systematic implementation of the restructuring measures and the
focus on cost leadership.

Textile, Leather & Paper Chemicals Division hit by unfavorable market
conditions

Textile, Leather & Paper Chemicals sales declined 3% in local
currency and 11% in CHF. The top line suffered from a deteriorating
leather market - in particular in the third quarter - and declining
demand for textile chemicals and dyes. The harsh economic climate in
the US spilled over to Europe and had a negative effect on global
leather and paper production. Growth in Asia and Latin America was
still healthy but with a weakening trend towards the end of the
period.

The profitability of the Leather and the Textile Businesses were
affected by the weaker demand. The bottom line of the Paper Business
suffered from an unprecedented hike in raw material costs. Good
progress on implementing the cost leadership strategy mitigated the
impact on the division's profitability. Gross margin and operating
margin dropped on a year-on-year basis, but stabilized towards the
end of the reporting period.

Healthy performance of the Masterbatches Division despite weakening
demand

Clariant's Masterbatches Division grew slightly by 2% in local
currency (-4% in CHF). Due to the relative proximity of the
masterbatch business to the end-user markets, the division was
affected by declining demand notably in the US but - particularly
towards the end of the period - also in Europe and Asia. Only demand
from Latin America and the Middle East remained persistently strong.
The automotive market in the US, and to a lesser degree also in
Europe, showed some weakness and the textile markets experienced a
downturn.

The profitability of the Masterbatches Division benefited from its
unique position as the global supplier of high-quality masterbatches,
strengthened in July by the acquisition of US-based Rite Systems /
Ricon Colors. The division compensated for the increase in raw
material costs by selective price increases. Margins remained around
previous year levels.

Strong profitable growth for Functional Chemicals Division

The Functional Chemicals Division grew 12% in local currencies (6% in
CHF). Volumes showed resilience against the macroeconomic downturn in
the first nine months. In particular the Agro Chemicals Business and
Oil and Mining Services contributed to the favorable top-line
development. The Personal Care Business also developed very
positively. The division was able to offset a declining demand in the
US by market share gains.

Functional Chemicals was able to compensate for the rising raw
material costs by price increases. Gross margin and operating profit
could be increased on a year-on-year basis. The Detergents and
Intermediates Business continued its turnaround. The cash flow of the
Division showed a negative trend towards the end of the period mainly
due to inventory build up resulting from the anticipated shut down of
a supplying ethylene cracker in Germany from late September to
beginning of November.

Outlook for 2008 confirmed

Clariant's focus during the remainder of the year will be on
continuous cash generation, cost reduction and price increases.

Despite an increasingly unfavorable macroeconomic environment,
Clariant expects an improved operating margin before exceptional
items of between 6.5% and 6.8% and a strong cash flow from
operations.

"Going forward, we will accelerate our restructuring efforts and
focus on operational excellence in order to significantly increase
profitability and respond to expected negative market developments
resulting from an extremely challenging macroeconomic environment",
said Hariolf Kottmann.

- end -

Contacts


Media Relations
Arnd Wagner          Phone +41 61 469 61 58
Investor Relations
Ulrich Steiner       Phone +41 61 469 67 45




+------------------------------------------------------------------------------------------+
|Key Financial Group Figures                                                               |
|------------------------------------------------------------------------------------------|
|                                      |               Nine Month|            Third Quarter|
|--------------------------------------+-------------------------+-------------------------|
|Continuing operations:                |        2008|        2007|        2008|        2007|
|--------------------------------------+------------+------------+------------+------------|
|                                      |      | % of|      | % of|      | % of|      | % of|
|                                      |CHF mn|sales|CHF mn|sales|CHF mn|sales|CHF mn|sales|
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|Sales                                 | 6'327|  100|  6447|  100|  2094|  100|  2111|  100|
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|                                      |      |     |      |     |      |     |      |     |
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|Local currency growth (LC):           |    5%|     |      |     |    5%|     |      |     |
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|Organic growth[1]                     |    4%|     |      |     |    5%|     |      |     |
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|Acquisitions/Divestitures             |    1%|     |      |     |    0%|     |      |     |
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|Currencies                            |   -7%|     |      |     |   -6%|     |      |     |
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|                                      |      |     |      |     |      |     |      |     |
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|Gross profit                          | 1'874| 29.6|  1908| 29.6|   615| 29.4|   611| 28.9|
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|EBITDA before exceptionals            |   679| 10.7|   618|  9.6|   242| 11.6|   188|  8.9|
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|EBITDA                                |   589|  9.3|   538|  8.3|   198|  9.5|   132|  6.3|
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|Operating income before exceptionals  |   488|  7.7|   417|  6.5|   178|  8.5|   123|  5.8|
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|Operating income                      |   377|  6.0|   271|  4.2|   119|  5.7|     5|  0.2|
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|Net income from continuing operations |   171|  2.7|   129|  2.0|    79|  3.8|   -45| -2.1|
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|Net income                            |   170|  2.7|    22|  0.3|    78|  3.7|   -51| -2.4|
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|Operating cash flow (total operations)|   174|     |   320|     |   147|     |   266|     |
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|                                      |      |     |      |     |      |     |      |     |
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|Discontinued operations:              |      |     |      |     |      |     |      |     |
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|Sales                                 |     0|     |    81|     |     0|     |     0|     |
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|Net loss from discontinued operations |    -1|     |  -107|     |    -1|     |    -6|     |
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|                                      |      |     |      |     |      |     |      |     |
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|Other key figures:                    |      |     |      |     |      |     |      |     |
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|Net debt                              | 1'432|     |  1361|     |      |     |      |     |
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|Equity (including minorities)         | 2'362|     |  2372|     |      |     |      |     |
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|Gearing                               |   61%|     |   57%|     |      |     |      |     |
|--------------------------------------+------+-----+------+-----+------+-----+------+-----|
|Number of employees                   |20'325|     | 20931|     |      |     |      |     |
+------------------------------------------------------------------------------------------+

[1] Throughout this statement the term "organic growth" is being
used. It means volume and price effects excluding the impacts of
changes in FX rates and acquisitions/divestitures.


Clariant - Exactly your chemistry.

Clariant is a global leader in the field of specialty chemicals.
Strong business relationships, commitment to outstanding service and
wide-ranging application know-how make Clariant a preferred partner
for its customers.

Clariant, which is represented on five continents with over 100 group
companies, employs around 20,000 people. Headquartered in Muttenz
near Basel, Switzerland, it generated sales of CHF 8.5 billion in
2007. Clariant's businesses are organized in four divisions: Textile,
Leather & Paper Chemicals, Pigments & Additives, Masterbatches and
Functional Chemicals.

Clariant is committed to sustainable growth springing from its own
innovative strength. Clariant's innovative products play a key role
in its customers' manufacturing and treatment processes or else add
value to their end products. The company's success is based on the
know-how of its people and their ability to identify new customer
needs at an early stage and to work together with customers to
develop innovative, efficient solutions.

www.clariant.com

---END OF MESSAGE---

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solely responsible for the content of this announcement.

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