EMS-Chemie Raises 2012 Forecasts on High-Performance Unit
Net sales and operating profit will be “slightly above” the figures for 2011, the Herrliberg-based company said in a statement. That compares with a forecast in April that revenue and earnings wouldn’t grow this year. The company’s shares climbed as much as 2.3 percent in Zurich trading.
The improved outlook was “not expected by us or the consensus,” Martin Schreiber, an analyst at Zuercher Kantonalbank, said in an e-mail. Results were boosted by niche products such as those of the polyamide product line, he said, which provides plastics to replace metal car-parts.
EMS-Chemie’s raised forecast contrasts with competitors’ predictions of a slowdown. Harlow, England-based specialty- chemical maker Yule Catto & Co. dropped 22 percent on June 27, the most in almost 23 years, after saying demand weakened in North America and Europe.
EMS-Chemie shares were 1.7 percent higher at 180.9 Swiss francs as of 10:41 a.m.
First-half earnings before interest and taxes rose 6.9 percent from a year earlier to 167 million francs ($169.7 million), beating the 158 million-franc average of four analyst estimates compiled by Bloomberg. Net sales increased 4 percent to 904 million francs.
New business initiatives and better sales in the U.S. and Asia “more than compensated for the effect of the declining economy in Europe,” EMS-Chemie said today.
To contact the reporter on this story: Patrick Winters in Zurich at firstname.lastname@example.org
To contact the editor responsible for this story: Tom Lavell at email@example.com