Tag Archives | chemical

Risk to Q4 chemical earnings estimates

Do third quarter earnings really matter? As we move into the thick of the earnings season, all eyes will be on how the fourth quarter is shaping up and how analysts will handicap fourth-quarter 2011 and full-year 2012 projections. Leading up to results, pre-announcement warnings have been scarce in the chemical group, boding well for […]

Continue Reading

Roll out the bullish forecasts

With the global industrial recovery starting to fire on all cylinders, chemical companies are coming out with increasingly bullish projections for both short and long-term growth. The comfort level is such that even five-year projections are back on the table – something unimaginable two years ago when the prognosticator’s crystal ball clouded over completely. US-based […]

Continue Reading

Chemical earnings engine roars

As they say in US NASCAR racing – gentlemen, start your engines! After a blip down in world stock markets on Tuesday, October 19, sparked by China’s quarter-point hike of a key interest rate as well as continuing fears in the US about the consequences of an ongoing investigation into improper foreclosures, bourses were back in the […]

Continue Reading

The money spigots are on

As central banks around the world open the money spigots, prepare for a major reflation (or inflation) of asset prices. The impact is poised to hit commodities of all kinds – oil, fuel, metals and chemicals. Last week, the Bank of Japan announced it will pump $60bn into its economy by buying government bonds, corporate […]

Continue Reading

Say goodbye to the summer and the slowdown

The third quarter is shaping up to be a strong one for the global chemical industry. Fears of a summer slowdown following a robust Q2 are fading like the hot weather. Germany’s BASF, the world’s largest chemical company, announced on September 22 that Q3 profits will come in better than expected, bolstered by strength in […]

Continue Reading
Time bomb.jpg

Fuse on the “debt time bomb” extended

In the August 30 Commentary, we put out a call for chemical companies to refinance their debt now at favorable rates: “Today there is no excuse for a company not to push oput its debt maturities. Interest rates are at record lows, and financing is available – even to those companies without the most stellar […]

Continue Reading

Asia leads the Lazy-V recovery

DOW CHEMICAL CEO and Australia native Andrew Liveris coined the term Lazy-V in describing the global economic recovery on the US-based company’s fourth quarter earnings conference call. Now we’ve all heard of a V-shaped recovery, but what’s a Lazy-V? “Aussie for moderate growth,” or slow, steady progress, translates BB&T Capital Markets analyst Frank Mitsch. Looking […]

Continue Reading

An M&A comeback in the works

It’s been a miserable year for chemical mergers and acquisitions (M&A) – the financial and economic crisis put the brakes on deal-making as financing dried up and earnings visibility disappeared. The big deals announced last year – Dow Chemical/Rohm and Haas, and BASF/Ciba – got done in 2009, but these deals represented the last throes […]

Continue Reading