14 December 2006 18:32 [Source: ICIS news]
TORONTO (ICIS news)--The commodity chemicals cycle is going sideways or even slightly down, Citigroup analyst P.J. Juvekar said on Thursday.
Juvekar advised investors to focus on chemical companies with specific strengths, for example companies that have made good progress in cutting costs or realigning their product portfolios, and firms which are good at executing their strategies.
Juvekar was briefing investors on Citigroup’s 2007 outlook for chemicals.
DuPont and Nalco are beginning to see positive impacts from their cost-cutting efforts, Juvekar said. “Both were late in the cost-cutting game but now they are seeing the [positive] impact in their earnings per share,” Juvekar added.
Other companies such as Air Products and Huntsman are repositioning their product portfolios, with Air Products exiting commodities and Huntsman divesting its ethylene business.
Meanwhile, companies such as Albemarle, Praxair, Celanese and Rohm and Haas are strong in executing their strategic plans. “At the end of the day it all comes down to superior execution,” Juvekar said.
Both PET and PVC product markets will be impacted by new capacities in
That could mean that upcoming
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