Swiss Ems Chemie 9M sales down on weak demand in Europe and China

Ems Chemie Holding AG

23/10/2024 06:17

Oct 23 (Reuters) - Swiss chemicals firm Ems Chemie
 EMSN.S  said on Wednesday its nine-month sales fell due to weak
demand in its main markets Europe and China, and a strong Swiss
franc, which appreciated as a safe haven currency. 
    The company maintained its full-year guidance although it
expects the weak market environment to persist in the fourth
quarter.
    
WHY IT'S IMPORTANT 
Ems Chemie generates about half of its sales in the automotive
market and is a supplier of the world's largest EV maker,
China's BYD. The company makes lightweight polymer car parts,
which are especially useful in electric vehicles, which
typically weigh more due to heavy batteries.
       
CONTEXT          
European automakers are hit with a sway of problems ranging from
high production costs and tepid demand at home to challenges
presented by vehicle electrification and competition from China,
where consumers cut on spending due to a weaker economy. Ems
Chemie makes most of its sales in Germany and China
    
KEY QUOTES
"In China, the recently announced economic stimulus package will
probably only have a positive effect and boost confidence in the
medium term," the company said in a statement.
    
"In Europe, no signs of structural political improvements or
confidence are noticeable".

"In the USA general disillusion may follow the presidential
elections".         

BY THE NUMBERS 
Sales fell by 6.3% to 1.59 billion Swiss francs ($1.83 billion)
in January-September, a tad below LSEG's consensus of 1.60
billion Swiss francs. 
    
($1 = 0.8669 Swiss francs)
    

 (Reporting by Andrey Sychev, editing by Kirsti Knolle)
 ((andrey.sychev@thomsonreuters.com;))