Swiss EMS Chemie posts 11% drop in Q1 sales on stronger Swiss franc
April 25 (Reuters) -Swiss nylon manufacturer EMS Chemie EMSN.S reported a double-digit drop in first-quarter net sales as the Swiss franc's strengthening curtailed net sales development, it said on Thursday, while confirming its 2024 forecast.
The Group's Q1 net sales decreased 11.3% year-on-year to 545 million Swiss Franc ($596.21 million), in line with two analysts' predictions that had projected a yearly drop in the range of 11.0-11.5%.
"As expected, the global economy remained subdued in the first quarter of 2024," EMS Chemie said in a statement.
The company's primary business unit High Performance Polymers reported an 11% fall in net sales to 493 million Swiss francs.
Its Specialty Chemicals unit, a smaller segment that contributes around 10% to total revenue, experienced a more significant 13.5% year-on-year decline, with sales reaching 52 million Swiss francs.
EMS Chemie confirmed its 2024 outlook, which forecast net sales to remain consistent with the 2023 figure of 2.19 billion Swiss francs. It also sees earnings before interest and taxes (EBIT) to be slightly higher than the 2023 level of 493 million euros.
The company said it "expects the economic environment to remain challenging", highlighting that delays in interest rate cuts and geopolitical conflicts could weaken demand.
($1 = 0.9141 Swiss francs)
Reporting by Alberto Chiumento; Editing by Janane Venkatraman
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