12 January 2007 14:52 [Source: ICIS news]
LONDON (ICIS news)--European chemical firms are expected to report markedly lower year-on-year sales growth in Q4 than for Q3, equity researchers Lehman Brothers said on Friday.
The analysts said in a note to clients that their air cargo volume growth indicator slowed to -1.4% in December from 2.0% in November, resulting in no growth for Q4.
There is a strong correlation between air cargo volume growth and growth in global industrial production and demand for chemicals.
The analysts said that the expected slowdown in sales for Q4 compared with a 5% rise in Q3 was partly due to this base effect on demand.
They added that it was also consistent with the equity researchers' forecasting assumption that chemical demand conditions in 2007 would soften relative to 2006.
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