EU, US chemical industry margins steady in Feb, March - analyst

17 April 2012 15:07  [Source: ICIS news]

LONDON (ICIS)--Chemical industry margins in the EU and the US held steady in February and March despite cost inflation, global analyst Bernstein Research said on Tuesday.

“Following the [global economic] crisis, Europe has maintained margins through steady price increases, while stronger cost inflation in the US temporarily pinched margins until mid-2011 when pricing continued to climb while costs started to recede,” the analyst note said.

“Now both regions are maintaining GM [gross margin] despite inflation, a sign of a healthy industry,” it added.

Bernstein Research said the companies in its coverage it currently favours are in segments that can “hold prices in the deflationary cost environment or have defensive characteristics”.

Fitting these descriptions were Dutch coatings producer AkzoNobel, US paint firm Sherwin-Williams, and industrial gases firms such as France-based Air Liquide, Germany’s Linde, and US firms Praxair and Air Products.

Bernstein's analysis excluded pharmaceuticals.

 


By: Franco Capaldo
+44 (0)20 8652 3214



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