Feb 28 (Reuters) - Swiss speciality chemicals maker Clariant (CLN.S) , opens new tab reported a higher than expected fourth quarter core profit on Friday, supported by volume growth and proactive margin management, and confirmed its targets for 2025.

Its earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 69% year-on-year to 179 million Swiss francs ($199 million) in the quarter, slightly above analysts' forecast of 176 million francs in a company-provided poll , opens new tab.

"For 2025, we expect modest growth, underlying margin improvement, and continued delivery of cost savings, resulting in improved cash generation," CEO Conrad Keijzer said in a statement.

Clariant, whose chemicals are used in production of smartphones and electric vehicles, confirmed its 2025 forecasts for an EBITDA margin of 17% to 18% and sales growth of 3% to 5% in local currency, despite persistently challenging market conditions.

The energy-intensive chemicals sector has seen an unprecedented drop in order volumes over the past two years as customers sought to reduce their inventories amid soaring energy prices, high inflation and escalating geopolitical tensions.

This year, the European industry will face another challenge in the form of U.S. President Donald Trump's planned 25% tariffs on imports from the European Union.

But Clariant reiterated that it expected 2025 to be a year of continued improvement in profitability and confirmed its medium-term targets to be achieved by 2027 at the latest.

It proposed a dividend of 0.42 Swiss franc per share, in line with what it paid out last year.

($1 = 0.8991 Swiss francs)

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https://www.reuters.com/markets/commodities/clariant-beats-q4-core-profit-expectations-2025-02-28/