25 May 2010 15:19 [Source: ICIS news]
LONDON (ICIS news)--Moody's Investors Service has forecast growth and restocking in the European and North American chemical industry to accelerate over the next 12-18 months, it said in a new report on Tuesday.
The debt rating agency added that a stable outlook in the near-term reflected expectations of continued broad-based growth in most market sectors and geographies.
"As the economy continues to improve, earnings will improve as volumes rebound and companies are able to raise prices for their products to maintain their margins. In addition, corporate balance sheets are stronger and access to liquidity is no longer a primary concern," said James Wilkins, a vice president-senior analyst at Moody's.
While exports to Latin America remained strong, exports of commodity chemicals to Asia were expected to be more volatile due to new capacity in Asia and the ?xml:namespace>
Moody’s added that although the chemical industry had been benefiting from economic growth in
The report also forecast a higher volume of merger and acquisitions, as chemical companies attained larger cash balances.
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