Swiss EMS Q1 sales rise 8.4%, warns of rising raw material costs

08 April 2011 16:00  [Source: ICIS news]

TORONTO (ICIS)--EMS Group's first-quarter sales rose by 8.4% year on year to Swiss francs (Swfr) 438m ($476m, €334m), partially due to the successful launch of new products, the Switzerland-based specialty chemicals firm said on Friday.

In local currency terms, sales for the three months ended 31 March rose 18.1% from the 2010 first quarter, but lower foreign exchange rates and high raw material prices hampered growth in Swiss franc terms, the company said.

“A sustained positive economic trend in the main sales markets worldwide, together with successfully launched new applications with speciality products, led to a very positive development of sales volumes,” the company said.

EMS said it expects a “continuing positive economic trend” for 2011, with full-year sales and operating income expected to exceed 2010 results.

However, EMS’s currency situation will remain unfavourable and raw material prices will continue to increase, it added.

“The future supply of raw materials will not keep pace with increasing demand, resulting in strong price increases at increasingly short intervals,” the company said.

“As a consequence, price increases for secondary products and stronger inflationary trends must be expected,” it added.

($1 = Swfr0.92, €1 = Swfr1.31)

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By: Stefan Baumgarten
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