LONDON (ICIS)--A recent shutdown is expected to weigh down on second-quarter results for Swiss-based Clariant while a force majeure at Evonik may do the same, according to analysts at Bernstein Research on Tuesday.
According to Bernstein, maintenance shutdowns at Clariant, which is expected to announce its results on 27 July, will “hurt” second-quarter earnings before interest tax, depreciation and amortisation (EBITDA) to the tune of approximately Swiss francs (Swfr)10m ($9.7m).
A combination of the above and ramp-up costs associated with Clariant’s ethoxylation plant in the US “could lead to a consensus miss in Care Chemicals”, said Bernstein.
“Trends in the remaining divisions are unchanged from 1Q and the company will likely confirm FY guidance for ... growth and higher profitability. We agree on the former but doubt the latter.”
Elsewhere, with regards to German firm Evonik, Bernstein is of the opinion that consensus may not have included the force majeure in performance materials, which amounted to €20m EBITDA.
“If adjusted, Q2 trends are in-line with expectations for the group,” it said of the company, whose results are due out on 3 August.
“Performance Materials will likely beat on margins (insurance payments without revenues), as will Resource Efficiencies (strong volumes) partly offset by Nutrition & Care (high comps in methionine, pressure in Baby Care).”
Dutch-headquartered company DSM’s animal nutrition business will feel the effect of the recent tainted meat scandal in Brazil, which Bernstein says could affect sales by up to €20m.
“The Materials division should outperform Nutrition which could lead to a disappointing earnings mix,” Bernstein added. DSM will announce its results for the second quarter on 1 August.
UK-headquartered specialty chemicals firm Croda, which announces its results for the second quarter on 25 July, will see organic sales growth of 3.8% year on year, well below the 4.9% posted in the first quarter, Bernstein said.
“Performance Tech (PT) will outgrow the other divisions on the back of a cyclically strong quarter. Margins in Personal Care should be strong (distributor exit, NPP growth), whereas PT will see a soft mix in Oil & Gas.”
($1 = Swfr0.97)
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