Third-quarter report 2017 (January - September 2017) of the EMS Group
- Positive development of net sales
- Raw material shortages lead to price increases
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 9 months of 2017, net sales rose by 6.7% compared to previous year to reach CHF 1,598 million (1,498).
As expected, the global economy developed in a restrained way. Growth of the worldwide automotive industry was significantly slower than in the previous year. The major automotive market China showed modest growth. Automotive production in the USA dropped significantly compared to previous year. The European automotive industry, on the other hand, picked up slightly. EMS was able to achieve over-proportional growth with innovative new business.
Since the beginning of the year, supply shortages have caused raw material prices to increase strongly and made sales price increases unavoidable. In August, hurricane "Harvey" hit the nerve center of the U.S. chemical industry, causing significant production shutdowns followed by shortages in the downstream supply chain worldwide. As a consequence, EMS is focusing on a stable raw material supply in order to ensure reliable delivery to customers.
For the whole year 2017, EMS continues to expect net sales and net operating income (EBIT) slightly above the previous year.