12 February 2009 17:01 [Source: ICIS news]
LONDON (ICIS news)--Citigroup has reduced its earnings estimates for oleochemicals producer Croda and flavours and flavourings group Givaudan as the majority of Europe’s chemicals sector prepare to announce fourth-quarter results, the bank said on Thursday.
Analysts at Citigroup downgraded earnings per share (EPS) estimates for the UK’s Croda in 2009 and 2010 by 12% and 16% respectively, as demand from its key end-user markets comes under pressure, while some of its key commodity prices have already fallen.
However, the bank expected Croda to post a strong set of results for 2008, predicting a 33% EPS increase to £0.495 ($0.71, €0.55).
The main factors for growth were seen to be cost synergies from the Uniqema acquisition, aggressive price increases, strong demand and high by-product glycerine prices.
EPS estimates for Swiss flavours and fragrances producer Givaudan in 2009 and 2010 were reduced by 14% and 15% respectively, driven by an expected decline in fragrance sales.
Citigroup forecast Givaudan to achieve flat profit in 2008 year on year, with good underlying progress offset by negative currency effects.
Croda and Givaudan both release their fourth-quarter results on 17 February, in a week that also includes earnings releases from Air Liquide, Clariant, DSM, Solvay and Yara.
($1 = €0.78/$1 = £0.70)
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