TAKING THE PULSE: European chemicals companies, although highly
diverse, should generally show improvement during the third
quarter, fueled by aggressive cost-cutting, restructurings,
continued growth in emerging markets, and increased volumes as
customer demand returns to pre-crisis levels.
Corporate outlooks will likely stay conservative, though, given
the continued uncertainty about global growth and prospects for a
slower 2011, especially in developed markets. Analysts expect more
value-creating consolidation within the sector and will scrutinize
balance sheets and company comment for M&A clues. Restocking
trends by customers are also a key theme.
Company profiles will reflect geographic and product strengths.
For example, Switzerland's Syngenta SA (SYT) Thursday gave a
bullish outlook for 2011, buoyed by strong demand in the third
quarter for crop protection and seeds products from farmers in
Latin America and Europe, as well as by steep price rises for corn
products.
COMPANIES TO WATCH:
Akzo Nobel NV (AKZA.AE)--Oct. 21, 0500 GMT
MARKET EXPECTATIONS: Akzo Nobel's decorative paints division is
still suffering from a sluggish U.S. and European housing market,
but strong demand in Asia should offset that. Akzo's specialty
chemicals division is expected to benefit from high Asian paper
consumption and better aluminum production. Akzo Nobel recently
presented a new medium-term target to grow revenue to EUR20 billion
in the coming five years while it maintained its target of a margin
of earnings before interest, tax, depreciation and amortization
between 13% and 15%. Management most likely will reiterate its
cautiously optimistic outlook for 2010.
MAIN FOCUS: Analysts don't expect any surprises and will look
out for comments on raw material prices and how they might affect
profit margins.
Air Liquide SA (AI.FR)--Oct. 26, 0530 GMT
MARKET EXPECTATIONS: Analysts expect sales to have risen in the
quarter amid improved demand for industrial gases in mature
economies and sustained momentum from emerging economies,
particularly Asia, underpinned by long-term contracts. Although its
quarterly performance may lag certain peers, Barclays Capital says
Air Liquide's goal of 8% to 10% sales growth, including small
acquisitions, looks achievable.
MAIN FOCUS: Reports of spending cutbacks within its distribution
and marketing operations have raised some concern about it
maintaining market share in some regional markets, so observers
will study company comments on cost-cutting. Prospects for further
profit margin improvements also are of interest.
Merck KGaA (MRK.XE)--Oct. 26, 0500 GMT
MARKET EXPECTATIONS: Continued pricing pressure in the
liquid-crystal display market and weaker LCD panel sales are
expected to take their toll on Merck's LC division. The unit has
seen high inventory levels due to declining prices for
liquid-crystal display panels since July, WestLB said, adding that
LCD panel units shipped fell from their highs seen in May and June,
with the exception of TV panels.
MARKET FOCUS: Comments and projections regarding the LCD market
will be important. Also key will be any comment on the U.S. Food
and Drug Administration's pending decision on whether to approve
Merck's new multiple sclerosis pill cladribine following
September's negative assessment by a key European drug advisory
panel. Fresh comment on the efficacy of Merck's new bowel cancer
drug Erbitux will also be keenly awaited.
Bayer AG (BAYN.XE)--Oct. 28, 0530 GMT
MARKET EXPECTATIONS: Bayer's materials unit should be the
strongest performer for the third quarter in a row and offset
weakness in other divisions. Analysts say demand seems to have
remained high with no appreciable slowdown in the chemical industry
over the summer months. JPMorgan expects Bayer to raise guidance
for the materials unit again. Prospects for the CropScience
division are also looking good with the planting season in Latin
America seemingly off to a good start, said WestLB.
MAIN FOCUS: Bayer's guidance for its materials unit will be in
focus, as an increase is widely expected. Analysts will also watch
out for comments on raw-material prices and foreign-exchange
rates.
BASF SE (BAS.XE)--Oct. 28, 0500 GMT
MARKET EXPECTATIONS: The world's largest chemicals company
already has indicated its third-quarter performance will be strong.
WestLB forecasts 2010 will be a year of record earnings for the
German group. The company has said its chemicals, plastics,
performance products and functional solutions divisions enjoyed
good capacity utilization.
MAIN FOCUS: Prospects for 2011 are key. Analysts also are
interested in news on the likely impact from BASF's planned
purchase and integration of Cognis. Some say BASF could make
further M&A moves after the proposed Cognis deal. Barclays
noted BASF is shifting from bulk chemical demand downstream into
specialties, and that most of the portfolio shift happened through
M&A, notably by buying Englehard, Degussa Construction
Chemicals and Ciba.
Solvay SA (SOLB.BT)--Oct. 28, 0530 GMT
MARKET EXPECTATIONS: Solvay's plastics and chemicals units
should report higher operating profit than in the year-ago quarter,
reflecting recovery in these markets. Notably, the plastics unit's
recurring Ebit is seen more than doubling to EUR101 million.
However, overall group operating profit and net income will be
lower than that in third quarter of 2009 due to Solvay selling its
pharma unit to Abbott Laboratories (ABT).
MAIN FOCUS: Observers will be looking out for clues to the
company's prospects for 2011 and potential acquisition targets on
which the chemicals company can spend some of the EUR4.5 billion
cash it received from the sale of its drugs business.
Linde AG (LIN.XE)--Nov. 2, 0530 GMT
MARKET EXPECTATIONS: Linde should generate solid third-quarter
results on good volumes in gas and improved project execution in
engineering, said Deutsche Bank. Barclays said Linde can increase
its gas margins and returns on tight cost control. Analysts expect
the company's 2010 guidance to be confirmed and note Linde's
leading and broad position in emerging markets.
MAIN FOCUS: Prospects for 2011 and any update on the ongoing
cost-cutting program are top topics, along with growth prospects in
emerging markets, which generate one-third of Linde's sales.
Royal DSM (DSM.AE)--Nov. 2, 0515 GMT
MARKET EXPECTATIONS: DSM's Ebit is expected to rise in the third
quarter year-on-year due to a strong performance at its materials
science division and its nutrition division. Its performance
materials activities are expected to be slightly weaker due to
reduced inventory rebuilding by customers, a trend management has
already flagged. Management also said its pharma activities will
have remained weak. In a recent strategy update, DSM set steep
earnings and growth targets that were seen by some market
participants as overly ambitious.
MAIN FOCUS: Analysts will look out for comments from the life
and material sciences company on the remainder of the year. It is
expected the company will reiterate its quantitative outlook that
2010 will be a strong year. Little if any comment on next year is
expected from the company.
Wacker Chemie AG (WCH.XE)--Nov. 4, 0515 GMT
MARKET EXPECTATIONS: Strong cost-cutting should support the
Ebitda margin. Goldman Sachs said Wacker Chemie has an
"industry-leading cost structure." Merck Finck expects a successful
third quarter, adding that "the typical summer slump didn't ensue
this time."
MAIN FOCUS: Any comments on 2011 would be of interest. UBS says
further expansion of its U.S. polysilicon business would boost
sentiment, as would a portfolio reshaping.
Clariant AG (CLN.VX)--Nov. 3, 0500 GMT
EXPECTATIONS: Clariant quarterly sales are seen slightly higher
by Zuercher Kantonalbank despite the strong Swiss franc. Ebit again
should be double-digit, and net profit should be slightly better on
the year, ZKB's Martin Schreiber said.
MAIN FOCUS: For Barclays, a key issue is how quickly CEO Hariolf
Kottmann is driving the group's restructuring. "We believe Clariant
is an exciting restructuring story, the depth of which appears
underestimated by many. We expect this to play out over the next
two years, with the potential to significantly beat our and
consensus forecasts," Barcap analyst James Knight said.
K+S AG (SDF.XE)--Nov. 11, 0500 GMT
MARKET EXPECTATIONS: Analysts expect good third-quarter earnings
on a recovery in fertilizer volumes and foresee confirmation of the
conservative 2010 Ebit guidance. Citigroup expects improving
momentum in the fourth quarter and in 2011.
MAIN FOCUS: Statements about the potash market and the direction
of potash and salt prices are in focus as well as indications for
2011.
Lanxess AG (LXS.XE)--Nov. 10, 0500 GMT
MARKET EXPECTATIONS: Analysts expect solid third-quarter
earnings, albeit down on the previous quarter due to seasonality
and maintenance shutdowns, which shouldn't come as a surprise, said
UniCredit. Analysts widely expect the company to raise its Ebitda
guidance.
MAIN FOCUS: Main focus will be the company's 2010 guidance,
which analysts say appears cautious, as well as any comments on the
fourth quarter and information regarding raw-material costs and the
effect of the current euro/dollar exchange rate. Also important
will be indications of demand strength, particularly among key auto
and construction customers.
Johnson Matthey PLC (JMAT.LN)--Nov. 24, 0700 GMT
MARKET EXPECTATIONS: The half-year presentation is expected to
contain another strong set of results from the U.K.-based
conglomerate, whose key activities are in catalysts, precious
metals, fine chemicals and process technology, driven by strong
growth in environmental technologies and precious metal products.
Analysts expect management to reiterate its earlier comments of
full-year results to be well ahead of last year. Fine chemicals
will be held back by a tough comparison because in last year's
second half when the company received a $12 million one-off payment
from the launch of a generic version of ADHD drug Adderall XR.
MAIN FOCUS: Comment on prospects for the catalyst-consuming
automotive and heavy truck industries, as well as precious metal
prices, particularly the platinum price as denominated in
sterling.
-By Sten Stovall, Dow Jones Newswires; +44 207 842 9292;
sten.stovall@dowjones.com
(Harriet Torry and Natascha Divac in Frankfurt, Anna Marij van
der Meulen in Amsterdam, Alessandro Torello in Brussels, and
Katharina Bart in Zurich contributed to this report.)
Arkema (PK) (USOTC:ARKAY)
Historical Stock Chart
From Jun 2024 to Jul 2024
Arkema (PK) (USOTC:ARKAY)
Historical Stock Chart
From Jul 2023 to Jul 2024
