Swiss EMS Chemie cuts 2024 sales guidance on currency effects

Ems Chemie Holding AG

12/07/2024 06:29

July 12 (Reuters) - Swiss nylon manufacturer EMS Chemie
 EMSN.S  cut its 2024 sales guidance on Friday, citing currency
effects as the Swiss franc strengthened.
    The company said it expects its 2024 net sales to fall
slightly, after previously forecasting net sales in line with
the 2023 figure of 2.19 billion Swiss francs ($2.44 billion).
    EMS Chemie it predicted a continuing difficult economic
environment in 2024, adding there was no sign of any growth
impulse in global manufacturing.
    "New political regulations and penal customs duties are also
unsettling consumer confidence and hampering companies'
investment decisions," the company said in a statement.
    The mood in the European chemical industry remains cautious
as the sector has long been suffering from weak demand and high
production costs.
    Net sales in the first half of the year declined 8.1% to
1.09 billion francs, EMS said.
    The company reaffirmed its full-year earnings before
interest and tax (EBIT) outlook and still sees a figure slightly
above previous year's 493 million francs.
    EMS Chemie kicked off the earnings reporting season for
European chemical makers, with peers such as Clariant  CLN.S ,
K+S  SDFGn.DE  and Givaudan  GIVN.S  set to report their
quarterly results in the coming weeks.    
       

($1 = 0.8958 Swiss francs)

 (Reporting by Bartosz Dabrowski and Marta Frackowiak in Gdansk
Editing by Ludwig Burger
)
 ((bartosz.dabrowski@thomsonreuters.com; +48 58 7696560;))