Third-quarter report 2011 (January - September 2011)

With its companies combined in the EMS-CHEMIE HOLDING AG and with global activities in the business areas of Performance Polymers and Fine Chemicals / Engineering, in the first nine months of 2011 the EMS Group achieved 15.0% higher net sales in local currencies compared to the previous year. Net sales in Swiss Francs amounted to CHF 1'255 million (1'226), which is 2.3% above the previous year's figure.

The weakening trend for worldwide economic growth, which was already visible in the second quarter of 2011, became more pronounced in the third quarter: The unresolved debt problems in Europe and the USA as well as turbulences in the financial and foreign exchange markets created general uncertainty about further economic developments and provoked consumers and customers worldwide to act cautiously and oriented to the short-term. Purchasing and investment decisions are being made with increasing caution and inventories are being reduced.

In the third quarter of 2011 EMS increased net sales in local currencies by 13.2% compared to the previous year. Asian sales markets and the worldwide automotive supplier business of EMS-EFTEC developed in an especially positive way and the growing business with high-temperature polymers was able to be further expanded due to an increase in production capacity. The currency situation, with a much stronger Swiss Franc than in the previous year, had, however, an increasingly negative effect on the development of net sales and result in Swiss Francs. EMS generates more than 95% of its net sales outside of Switzerland.

In the coming months, EMS is expecting a clearly weaker economy with a continuing unfavourable currency situation. Net sales and operating income (EBIT) in Swiss Francs for the whole year 2011 are still expected to close slightly above those of the previous year.