30 September 2013 17:16 [Source: ICIS news]
HOUSTON (ICIS)--OMNOVA is taking a cautious approach to reports of Europe’s economic recovery, the CEO of the US-based specialty hemical producer said on Monday.
“I don’t see many signs that it will be a V-shaped recovery,” said chief executive Kevin McMullen during a conference call about the company’s fiscal Q3 earnings.
Sentiment surrounding the European economies has rebounded in recent months. In the 28-member EU, the ESI rose by 2.4 points to 100.6, the European Commission said on Friday, bringing the indicator above its long-term average for the first time since July 2011. In the 17-member eurozone, the ESI rose by 1.6 points to 96.9.
But McMullen, whose company has a manufacturing facility in Le Havre, France, and Europe/Middle East/India headquarters in Villejust, France, called the recovery “a difficult one to read”.
McMullen said in OMNOVA’s Q3 earnings news release that lower-than-expected volumes in Europe posed a downside risk to earnings in the fourth quarter.
“Given everything Europe has been through … caution is not a bad perspective to take on it,” McMullen later said during the conference call.
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