Transnational enterprise eye-catching performance in emerging markets

Sinochem Xinxun is committed to the transformation of transnational chemical companies in recent years through continuous investment in emerging countries, dislocation development, as well as the key development of market potential, high added value of functional materials and specialty chemicals, and now began to enter the harvest season. Recently, companies such as BASF, Bayer, Dow, and Celanese announced their third-quarter earnings reports. Although the international capital markets experienced significant shocks this year, the company’s economy in the third quarter was due to its outstanding performance in emerging markets. The indicators are still good. They are full of confidence in achieving the year-round goals and future growth, but they remain cautiously optimistic.

Sales maintained rapid growth. BASF’s performance report showed that despite the unfavorable factors such as the disruption of Libya’s crude oil production from February this year, the company’s sales in the third quarter increased by 11.6% (year-on-year), reaching 17.6 billion. In the Euro, EBIT without special items increased by 6% year-on-year.

Bayer Group's sales in the third quarter increased by 1.0% to 8.67 billion euros; sales after currency and asset portfolio increased by 4.8%, of which sales in emerging markets increased by 9.5%; EBIT increased sharply by 94.9 %, for 10.99 billion euros.

Dow Chemical also performed well in the third quarter, achieving sales of $15.1 billion, an increase of 17%, and double-digit growth in sales across all operations and geographies. The equity investment income in the third quarter was US$375 million, which was US$289 million after deducting certain items, an increase of 15%. Thanks to the increase in product prices in all business sectors and the influence of favorable currency factors, Celanese realized net sales of US$1.807 billion in the third quarter, an increase of 20%; operating profit was US$196 million, compared with US$221 million in the same period of last year .

In order to realize the goal of long-term profitable growth, the emerging markets have achieved a long-term goal of profitable growth. This year, they continued to expand into the markets of emerging economies, focused on product innovation and the development of new materials businesses, and significantly improved their third quarter earnings.

Bayer's businesses in the three major subgroups: pharmaceuticals, health sciences, materials science and crop sciences have developed well in the emerging markets. The company's sales in the Asia Pacific region (excluding Japan, Australia, and New Zealand), South America, Eastern Europe, Africa, and the Middle East countries and regions in the third quarter totaled 3.331 billion euros, a 9.5% increase after the exchange rate adjustment. Despite the constraints of raw materials and energy prices, sales of the company's high-performance materials increased by 3.9% in the third quarter to reach Euro 2.768 billion.

In addition to crude oil and natural gas, BASF's sales in all businesses have increased. Sales volume of plastics business and functional solution business kept growing, and the market had a strong demand for its automotive coatings and catalyst products. Dow Chemical's emerging regional sales amounted to 5 billion U.S. dollars. It once again set a new quarterly record. Its sales in China also set new records. At the same time, sales volume in the Asia Pacific region increased by 5%, sales in South America increased by 7%, offsetting sales in the United States and Western Europe. decline. In addition, Celanese also achieved high returns in the third quarter, mainly due to record performance in the high-performance engineering materials and special industrial products business.

Prospects for cautious optimism In the earnings report, heads of these companies are still confident about the outlook for the fourth quarter and next year, but remain cautiously optimistic as the global economic recovery slows.

BASF expects sales and earnings for the full year to still surpass last year's level. However, as BASF's customers are more cautious in planning, they begin to reduce inventory and postpone some orders based on possible price cuts. BASF's executive board, Dr. Berkeci, stated: "Although current performance is good, BASF still needs to be cautious. In particular, China's loan-limiting policy, European debt and the US debt crisis will all have an adverse impact on economic growth. BASF Will continue to work to further reduce costs and increase efficiency."

Dow Chemical continues to be optimistic about the future market prospects. Dow Cheng, chairman and chief executive of Dow Chemical, said: “In the emerging regions, the growth of middle class groups continues to drive demand growth, especially in the area of ​​infrastructure and urbanization. At the same time, we have seen in the anti-recession industry. Highlights, such as agriculture, food packaging, energy, and water, are Dow's leading markets."

Bayer CEO Dr. Malkin Dykes believes that "based on Bayer's outstanding performance in the third quarter, we can confirm that the Bayer Group's full-year expectations set forth this spring can be achieved." He expects the company to e Profit before sales will exceed 7.5 billion euros.

Celanese Chairman and Chief Executive Officer Weidmann said: “We are still convinced that Celanese’s leading technology, low cost advantage, wide variety of end market layout, and dominance in the emerging market will continue to drive business. Growth Based on the strong performance in the third quarter, the company raised its 2011 full-year performance forecast."