EMS Gains as High-Performance Plastic Fuels Profit: Zurich Mover
EMS-Chemie Holding AG (EMSN) rose the most in almost two years after the Swiss chemical producer said full-year profit will increase as its high-performance plastics business grows.
The shares jumped as much as 4.7 percent to a record and were up 4.2 percent at 308 Swiss francs as of 11:43 a.m. in Zurich, with trading volume exceeding the three-month daily average. The stock has soared 73 percent in the past year, valuing the Herrliberg, Switzerland-based company at 7.2 billion francs ($7.5 billion).
“Despite the at-times striking economic slowdown in some countries, EMS has seen encouraging business development,” Martin Schreiber, an analyst at Zuercher Kantonalbank in Zurich, said in a note to clients today. “The focus on specialties in the area of high-performance polymers and in particular on growth through new businesses is paying off.”
First-half earnings before interest and tax increased 9.3 percent to 183 million francs and EMS said it expects the full-year figure to outstrip 2012. The company’s products are used in car arm rests, dashboard components, eyeglass lenses, and plastic packaging to keep carbonated beverages bubbly.
The company plans to increase its total dividend this year to 10 francs from 7 francs.
Schreiber rates the shares market perform.
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