Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

EMS-Chemie Rises to 23-Year High on 43% Dividend Increase

Don't Miss Out —
Follow us on:

Feb. 8 (Bloomberg) -- EMS-Chemie Holding AG rose to the highest in more than 23 years for a second consecutive day as the Swiss chemical producer said it would raise the dividend 43 percent after high-performance plastics sales bolstered profit.

EMS climbed as much as 4.1 percent to 244.40 Swiss francs, the highest since at least Oct. 24, 1989, based on closing prices, and was trading up 1.2 percent at 4:01 p.m. in Zurich. Volume amounted to 53 percent of the three-month daily average.

Full-year earnings before interest and taxes rose 8.4 percent because of “lucrative business” selling polymers for smartphones like Samsung Electronics Co.’s Galaxy SIII, EMS Chief Executive Officer Magdalena Martullo-Blocher said at a press conference in Zurich. Herrliberg-based EMS plans a dividend of 7.50 francs a share and a 2.50-franc extraordinary dividend, compared with 7 francs a year earlier.

EMS showed “robust margins, rock-solid balance sheet and top-line growth even in adverse market conditions,” Patrick Rafaisz, an analyst at Bank Vontobel AG, said in a report to clients. “Although the shares may react positively today, we clearly need better earnings growth prospects to justify these levels,” said Rafaisz, who has a reduce recommendation on EMS.

Ebit and net sales will probably rise slightly this year, Martullo-Blocher said. The company will expand the sales and development workforce 14 percent and add high-performance polymer production capacity in 2013, she said.

To contact the reporter on this story: Patrick Winters in Zurich at pwinters3@bloomberg.net

To contact the editor responsible for this story: Simon Thiel at sthiel1@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.