Styrolution Group GmbH, the plastics venture formed by BASF SE (BAS) and Ineos Group AG, forecast the automotive industry will be a bright spot for sales and earnings this year, countering weakened markets in Europe.
The U.S. car industry has seen a “significant” revival, the Frankfurt-based company said in a statement. Earnings before interest, taxes, depreciation and amortization will likely exceed last year’s result, as a result of cost-savings, it said.
“We anticipate sales will be buoyed up globally by the automotive sector,” Styrolution said.
Chief Executive Officer Roberto Gualdoni is using an efficiency drive as he combines the operations of Ineos and BASF into a 6 billion-euro ($7.8 billion) company. He aims to reduce costs by more than 200 million euros by 2016 and Styrolution said today the program is ahead of schedule with 80 percent of annual targets to be achieved this year.
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