US Momentive Specialty seeing some stabilisation in Europe: CEO

13 August 2013 18:54  [Source: ICIS news]

HOUSTON (ICIS)--Momentive Specialty Chemicals is seeing some stabilisation in business conditions in Europe, but it is still too early to say whether the region is really recovering, the CEO of the US-based producer said on Tuesday.

“We have seen stabilisation, [Europe] is better positioned now than it was a year ago when there was a greater degree of uncertainty,” Craig Morrison told analysts during Momentive’s 2013 second-quarter earnings call.

“We have seen some modest improvement in orders, but it is difficult to read whether that’s people restocking at a certain time or the beginning of a significant improvement,” he said.

“At this point, I think it is too early to call a recovery in Europe, but I would say there has been a stabilising effect and a modest improvement,” he added.

Morrison said that Momentive was fortunate because much of its European business is in northern Europe, rather than in troubled southern Europe.

As for Momentive's near-term outlook, Morrison said that even though the global economy continues to be unpredictable, the company expects that its overall volumes will moderately increase in the second half on 2013.

For the three months ended 30 June, Momentive reported revenues flat year on year at $1.3bn (€975m) amid “continued headwinds” in Europe, as well as slower growth in the Asia-Pacific region. 

($1 = €0.75)

By: Stefan Baumgarten
+1 713 525 2653

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