US conditions for BMS difficult - chairman

28 February 2008 21:35  [Source: ICIS news]

LEVERKUSEN, Germany (ICIS news)--German life science and chemical group Bayer on Thursday conceded that Q4 trading conditions were difficult in the US for some parts of its Bayer MaterialScience (BMS) division and remained cautious about 2008.

Bayer Chairman Werner Wenning said at a press conference in Leverkusen there had been some “friction” in the automotive and construction sectors in North America during the fourth quarter, although business was robust in Western Europe and Asia.

He said he was confident that BMS’s Q1 2008 earnings before interest, tax, depreciation and amortisation (EBITDA) would match those of Q4 2007. In Q4 2007, EBITDA rose 12.8% to Euro 325m.

Unlike Bayer’s other divisions, however, Wenning would not make a full-year prediction for BMS: “For BMS we have to observe quarter by quarter. It is very difficult to make or give good guidance for the long term.”

Wenning blamed the uncertain business environment and volatile raw material prices for making forecasting difficult.

Bayer MaterialScience is strong in polycarbonates and polyurethanes, both dependent on the construction and auto industries.

However, Wenning would not give any indication of how trading conditions are developing in the US this quarter, saying: “It remains to be seen whether there will be a downturn [in the US in Q1]."

By: Will Beacham
+44 20 8652 3214

< previous article(VIDEO - ICIS news Europe Lunchtime Bulletin 29 October 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly