Clariant’s shares fall as annual financial results probed

Clariant has announced that the publication of its full year 2021 results will be delayed due to an investigation into accounting issues.
As a result, the publication of the Integrated Report 2021 and the Annual General Meeting of shareholders (AGM) will be postponed beyond the scheduled dates.
Clariant shares fell more than 16% in early trading on February 14.
The investigation was triggered by information from internal whistleblowers, which the company took very seriously.
“At Clariant, we encourage our staff to speak up and therefore appreciate that our employees brought this issue to our attention. We are investigating this matter with utmost urgency and diligence,” said Conrad Keijzer, Clariant’s CEO.
The investigation focuses on the booking of certain provisions and accruals. It is reviewing whether employees incorrectly booked those provisions and accruals, with the aim of steering the company’s results to meet internal and external targets.
The company has appointed independent advisors and external counsel Deloitte and Gibson, Dunn & Crutcher, to investigate these accounting matters. The periods under review concern the company's previously issued annual and first half year financial statements as well as the quarterly reporting for the years 2020 and 2021.
As a result of this ongoing investigation and based on current knowledge, Clariant may be required to restate previously published financial statements, including the annual financial statements for the financial year ended December 31, 2020 and the first half year financial statements for the periods ended June 30, 2020 and June 30, 2021 as well the quarterly reporting during those years.
At this stage, it is not yet clear whether this issue also extends to accounting periods prior to 2020.