Swiss EMS-Chemie preparing for long downturn in Europe

10 October 2012 19:09  [Source: ICIS news]

LONDON (ICIS)--EMS-Chemie is preparing for “a longer phase of unfavourable economic development in Europe", the Switzerland-based producer said on Wednesday.

The specialty chemicals and performance polymers firm pointed in particular to weakness in the European automotive industry, which is one of its key markets.

In September alone, production volumes in the west European automotive sector dropped by 21% year on year, EMS said.

“Significant decreases are also expected for the fourth quarter of 2012,” it added.

As a result, EMS is putting its focus on new applications for its high performance polymers, as well as on further expanding its market positions outside of Europe, it said.

But despite the difficult market environment, EMS continues to expect that full-year 2012 net sales and operating income will come in slightly above those of the previous year, it said.

For the nine months ending on 30 September, EMS’s sales were up 7.3% year on year to Swiss franc (Swfr) 1.35bn ($1.44bn, €1.11bn).

“Successfully realised new business, strong sales growth outside of Europe and a stable valuation of the Swiss franc to the Euro more than compensated for the market-related drop in net sales in Europe,” the company said.

($1 = Swfr0.94)
($1 = €0.77)

By: Stefan Baumgarten
+1 713 525 2653

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