Bayer MaterialScience to double 2010 EBITDA - CEO Patrick Thomas

28 May 2010 16:07  [Source: ICIS news]

SHANGHAI (ICIS news)--Bayer MaterialScience (BMS) is confident that its 2010 full-year earnings before interest, taxation, depreciation and amortisation (EBITDA) will be double those of the previous year, the company’s CEO said on Friday.

BMS’s Patrick Thomas said he expected the second quarter to be slightly better than the first, while the 2010 full-year results would double that of 2009.

He was interviewed at the opening of BMS’s AutoCreative centre in Shanghai, China. 

The driver of the company’s growth in 2010 would be polycarbonates (PC), owing to the boom in electronics, office equipment and flat-screened TV panels, Patrick Thomas said.

America isn’t adding many jobs, but it’s buying a lot of office equipment,” he said, adding that all flat-screened TV panels wider than 42 inches must use PC for the casing.

“Meanwhile, optic disc storage is also performing surprisingly well,” he said.

Each year BMS purchases $3bn-4bn (€2.4bn-3.2bn) worth of benzene, toluene and phenol for feedstock, which leaves the company open to risks from volatile aromatics prices, he said.

“The downside risk is only on high material cost,” said Thomas.

The company is a major producer of polyurethanes (PU), toluene diisocyanate (TDI) and methylene di-p-phenylene (MDI).

PU demand had seen speculative growth in China in the second half of 2009 thanks to the country’s automotive industry.

“This year the growth won’t be that much and will be closer to GDP. If demand remains the same as [the first quarter], the annual growth of PU demand from the automotive sector in China will be 5-10%,” said Michael Koenig, president of Bayer MaterialScience China.

The company’s CEO said: “As the world’s largest consumer and manufacturer of automobiles, China continues to be a leader in the growth of the automotive market and plays a crucial role in the sustainability of the industry.”

($1 = €0.81)

For more on Bayer MaterialScience visit ICIS company intelligence
For more on polycarbonate visit ICIS chemical intelligence
To discuss issues facing the chemical industry visit ICIS connect

By: Alfred Wong
+65 6780 4356

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