Symrise Gains as Quarterly Sales Beat Estimates
Symrise AG (SY1), the fourth-biggest maker of fragrance and flavors, rose the most since May in Frankfurt trading as accelerating second-quarter sales showed resilience to the crisis that has befallen its chemical industry peers.
Symrise rose as much as 5.2 percent to 34.45 euros, the highest intraday price since May 8, and was trading up 4.3 percent at 11:39 a.m. in Frankfurt. That values the company at 4 billion euros ($5.3 billion) with trading volume at more than 60 percent of the three-month daily average. The stock was the biggest gainer in the 20-member Bloomberg Europe Chemicals Index, which fell 0.6 percent.
Symrise, based in Holzminden, Germany, reported an 8.7 percent increase in second-quarter sales to 477 million euros, compared with an average estimate of 464 million euros in a Bloomberg survey. As it predicted the “robust demand” of the first half to continue for the rest of 2013, the company affirmed its goal to “notably exceed” growth in the global market for fragrances and flavors of 2 percent to 3 percent this year.
“I was positively surprised by the organic growth of revenue,” Norbert Barth, an analyst at Baader Bank AG (BWB) in Frankfurt, said by phone today. “The weakness of the chemical industry did not show at Symrise as it supplies the consumer industry.”
An 8.5 percent increase in second-quarter net income, and a 9.8 percent rise in earnings before interest and taxes put earnings declines by industry peers in the shade.
Brenntag AG (BNR), the world’s largest distributor of chemicals, posted second-quarter operating profit that fell 8.3 percent to 169.1 million euros from a year earlier, missing analyst estimates, as it succumbed to a European economy struggling to emerge from recession. Its shares slid as much as 6.1 percent to make Brenntag the chemical index’s biggest decliner.
Yesterday, Lanxess AG (LXS), based in Cologne, lowered its profit forecast for 2014 and said it’s stepping up cost-cutting measures as second-quarter profit slumped to 9 million euros from 174 million euros.
Shares of the German supplier of plastics and rubber to the automotive industry fell as much as 2.5 percent today, bringing this week’s decline to 6.3 percent.
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