On probation after falsifying the accounts

Clariant gets away with a light blue eye. The maker of specialty chemicals had to admit in February that individual managers had doctored the books in order to look better in reviews. Since then, there has been uncertainty about the financial results for 2020 and 2021. The group has now completed the investigation into the incidents that whistleblowers had revealed. It turns out that the reputation is damaged, the finances are not.

After the revision of the figures, a slightly higher operating profit (Ebitda) of CHF 597 million is expected for 2020. This allows the margin to climb to 15.5 percent. Since a preliminary margin of 16.2 percent resulted in 2021, analysts see the company on the right track operationally. We still have to wait a bit for the definitive financial statements, as well as for the figures for the first quarter. Nevertheless, investors breathe a sigh of relief: the share price rose by up to 12 percent on Wednesday.

It’s an end to the horrors of CFO Stephan Lynen. He will step down on July 1 after just over two years at the post. Restoring credibility leaves no other step. It takes over Bill Collins, the North American boss of the French energy supplier Engie. The external appointment is intended to make the new start clear. Clariant CEO Conrad Keijzer has been trying to bring calm to the company since the beginning of 2021.

But it is also true for Clariant that a reputation is damaged faster than it is repaired. The shares are almost a fifth below the 20 francs at which they were listed before the scandal became known. The business prospects are good this year. But Clariant will rightly be under observation: it’s about whether not only the processes but also the culture has changed, which has made manipulation the tool of choice for some employees.

You can refer to Benjamin Triebe, Editor for Business and Business Twitter follow.