Swiss specialty chemical company, Clariant International Ltd., has reported what it terms as satisfactory first half results, with momentum picking up in the second quarter. Sales rose 3% in local currency terms in the second quarter compared with the same period in 2004.

Net income rose 30% to CHF146 million ($ 115.5 million) compared with CHF 112 million in the first half of 2004. Gross profit declined to CHF1.252 billion, from CHF1.342 million a year earlier, affected by higher raw material costs.

"In the context of the prevailing market conditions, this was a satisfactory first half," said CEO, Roland Loesser. "Particularly encouraging was the stronger second quarter, which we expect to be able to sustain. The main area of uncertainty, of course, is the current volatility of raw material prices."

The businesses that were able to raise prices above group average were in the Leather & Paper Chemicals, Textile, Functional Chemicals, and Masterbatches divisions. Growth momentum was notable across all regions, with performance especially strong in Germany, Clariant's largest market.