Oct 16 (Reuters) - Swiss chemicals company EMS Chemie EMSN.S reported a 6.2% decline in its nine-month sales on Thursday, citing the impact from a stronger Swiss franc and a weak economy affected by trade barriers.
It confirmed its full-year financial targets.
WHY IT'S IMPORTANT
EMS is one of the first European chemical companies to report its sales, offering a glimpse into the health of a sector which has struggled to recover from the region's 2022 energy crisis and faces renewed challenges as U.S. tariffs disrupt global trade.
KEY QUOTES
"Uncertainty dominates companies' and consumers' purchasing mood and hampers their willingness to invest. In the US, companies and consumers continue to hold back on spending in expectation of higher inflation rates," the company said in a statement.
CONTEXT
EMS, which generates about half of its revenue from the automotive industry and supplies China's BYD 002594.SZ, said global tariff tensions continue to unsettle sentiment and disrupt supply chains.
However, it added that it had prepared for the trade barriers early and said that its products sold in the U.S. were either produced locally or were exempt from customs duties.
ACQUISITION OF REMAINING EFTEC CHINA STAKE
EMS said it will take over the remaining 25% stake in a Chinese automotive supplier EFTEC China that it does not already own from Huayi, bringing its ownership to 100%.
It added that it will fund the deal "easily" with its own funds, without disclosing the value.
China, the world's largest and further growing automotive market, offers substantial growth potential, EMS said.
BY THE NUMBERS
Nine-month sales came in at 1.49 billion Swiss francs ($1.87 billion) compared to 1.59 billion the year before.
($1 = 0.7952 Swiss francs)
(Reporting by Cian Muenster and Maria Rugamer; Editing by Anna Pruchnicka and Matt Scuffham)
((Cian.Muenster@thomsonreuters.com; Maria.Rugamer@thomsonreuters.com))
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