Credit Suisse expects lower earnings growth from European chemicals

30 January 2013 11:00  [Source: ICIS news]

LONDON (ICIS)--Earnings expectations for the European chemical sector in 2013 are likely to be downgraded because of expected “underwhelming” fourth-quarter 2012 results and limited visibility into 2013, London-based Credit Suisse analysts said on Wednesday.

Sector companies begin reporting soon on their fourth-quarter and full-year 2012 financial performance and expectations for the current year.

In a note to clients, the bank cut its estimate of underlying  or "organic" earnings growth for the sector to 4.5% against consensus market estimates of 6%. Earnings at this level exclude the impact of cost savings, currency fluctuations and acquisitions.

The bank’s 2013 earnings before interest, tax, depreciation and amortisation (EBITDA) estimates were cut for DSM, Arkema, Croda, Uniqema and BASF, as well as for the industrial gases groups Air Liquide and Linde.

Market forecasts are too high for LANXESS and Umicore, it said, but too low for AkzoNobel, Solvay and Syngenta.

By: Nigel Davis
+44 20 8652 3214

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