With its companies combined in EMS-CHEMIE HOLDING AG and global activities in the business areas Performance Polymers and Fine Chemicals / Engineering, the EMS Group reports net sales for the first nine months of 2008 up by 4.5% over the previous year.
Consolidated net sales were CHF 1'212 Mio. (1'160), an increase of 4.5% compared to the previous year. The increase in local currencies compared to the previous year is 8.5%. Weaker foreign currencies diminished net sales and result in Swiss francs. Planned growth from new business in the main business area of Performance Polymers was achieved with success. The generally reduced demand at customers worldwide, however, is having an increasingly negative effect on the sales volume development of EMS.
While in the first half-year of 2008 high energy and food prices accelerated the expected economic slowdown, the current problems in the financial and capital markets are causing this slowdown to lead to a literal economic slump.
In view of the expected economic slowdown, EMS already initiated cost and investment reductions at a very early stage. Due to the greater-than-planned severity of the slump, additional cost-reduction programmes are being implemented.
For the entire year 2008, EMS continues to expect net sales slightly above the previous year. Due to the deteriorating economy, unfavourable currency exchange rates and the change in the scope of consolidation, net operating income (EBIT) will close below the previous year.
