First-quarter report 2017 of Swiss EMS Group
The EMS Group, with its companies combined in the EMS-CHEMIE HOLDING AG, is globally active in the business areas High Performance Polymers and Specialty Chemicals. In the first three months of 2017, net sales increased by 5.8 % compared to previous year to reach CHF 533 million (CHF 503)
As expected, overall economic development in the main markets China, Europe and NAFTA slowed compared to the last quarter. Growth of worldwide automotive manufacturing was halved down to 2.3 %.
EMS was able to realize new business in all regions. With innovative products and new applications, it was possible to further expand business and strengthen market positions. Particularly pleasing net sales growth was achieved in Asia. Supply shortages are causing raw material prices to increase strongly and steadily and make customer sales price increases unavoidable.
In the main area of High Performance Polymers, EMS was able to successfully continue growth with speciality products. Pleasing development was shown in all regions and customer markets. New business was generated with solutions providing customers with improved performance as well as cost savings and weight reduction. Sales volumes were increased correspondingly by 6.1 %.
The secondary business area Specialty Chemicals developed as expected. As in the main area of High Performance Polymers, this area also showed a slightly negative currency effect.
For 2017, EMS is expecting the slow worldwide growth to continue. The continuously increasing raw material prices will not relax in the next months. Together with a beginning general inflationary trend, worldwide economic growth may be further slowed. In addition, political instability may cause turbulence in the markets, possibly resulting in fluctuating demand with shortages or surpluses.
EMS is confident with regard to development of its own business. The successful strategy of growth with speciality products in the field of high-performance polymers will be continued.