13 July 2010 17:44 [Source: ICIS news]
LONDON (ICIS news)--Chemical companies are likely to report consistently strong second-quarter results in the upcoming weeks, investment bank JP Morgan Cazenove said on Tuesday.
“The rebound from a depressed quarter last year, combined with some product shortages, should push up earnings to near record levels in some cases. Sentiment should remain positive,” it said in a report.
“With visibility in order books still limited, and July likely to be robust, companies are likely to reflect continued optimism into the second half,” JP Morgan Cazenove added.
However, the investment bank warned that seasonal companies, which had seen share prices improve strongly since 2009's lows, would find growth similar to that achieved in the second quarter difficult as comparative quarters become tougher and on fears that ?xml:namespace>
Additionally, JP Morgan Cazenove said that volume growth on a sequential basis was likely to slow into the third quarter, while higher input costs, although now falling in some areas, would place pressure on margins in the second half of 2010.($1 = €0.79)
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