(Ad hoc announcement pursuant to Art.53 LR)
- Successful new business with innovative specialties
- Clear weakening of the global economy
- Massively higher raw material and energy prices
The EMS Group, with its companies combined in the EMS-CHEMIE HOLDING AG and globally active in the business areas High Performance Polymers and Specialty Chemicals, increased net sales in the first nine months of 2022 by 10.7% compared to previous year to reach CHF 1871 million (1,691), in local currencies, this is an increase of 13.5 % compared to previous year. A new net sales record has been achieved.
Recovery of the global economy after COVID-19 stopped abruptly in the second quarter of 2022. The Ukraine conflict caused immense uncertainty and massively higher energy prices, particularly in Europe. As a result, raw material prices rose enormously. Existing inflationary tendencies have increased substantially and are strongly limiting global consumer purchasing power. The inevitable increase in interest rates is additionally hampering economic development. In China, rigorous lockdown measures, as well as the emerging real-estate crisis, are lowering consumer mood and have a negative effect on economic activity. Even in the US, still profiting from solid demand, indications of a slowing economy are becoming apparent.
Already at the beginning of the year, EMS began to prepare for an unstable economy. The proven strategy with profitable specialities has been followed and planned new development and expansion projects are now being pursued more than ever. New business with profitable specialities was completed successfully and growth of net sales achieved in all geographic regions. Focus is currently being placed on energy and cost-saving solutions for customers. Market opportunities are being seized as they arise. The announced investment programme with more than CHF 300 million to increase capacity and energy efficiency at the main production site Domat/Ems (Switzerland) is currently being implemented. Other production locations are also undergoing major expansion. Through proactive measures taken to safeguard its energy supply, secure delivery reliability will be ensured. Rising inflation, in particular with regard to raw materials and energy prices made sales price increases for customers inevitable.
For 2022 as a whole, EMS continues to expect net sales and operating income (EBIT) slightly higher than in the previous year despite the unfavourable economic environment.
The complete Third-quarter report can be downloaded via the following link:
Third-quarter report 2022 (PDF, 487 K)