Current Affairs
April 12, 2023
BASF Releases Q1 Estimates
BASF Group releases preliminary figures for first quarter of 2023
- EBIT before special items, EBIT and net income in Q1 2023 considerably above respective average analyst estimates
- Sales in Q1 2023 considerably below analyst consensus
Ludwigshafen – April 12, 2023 – BASF has released preliminary figures for the first quarter of 2023. Sales declined by 13.4% in the first quarter of 2023 to €19,991 million (Q1 2022: €23,083 million). This was mainly driven by considerably lower volumes. Sales were considerably lower than average analyst estimates for the first quarter of 2023 (Vara: €21,819 million).
EBIT before special items of BASF Groupamounted to an expected €1,931 million in the first quarter of 2023, a decline of 31.5% compared with the prior-year quarter (Q1 2022: €2,818 million) but considerably above the analyst consensus for the first quarter of 2023 (Vara: €1,599 million). In particular, EBIT before special items in the Agricultural Solutions segment considerably exceeded average analyst estimates. Chemicals, Materials and Surface Technologies were also considerably above the respective average analyst estimates for EBIT before special items in the first quarter of 2023. In the Industrial Solutions and Nutrition & Care segments, EBIT before special items missed average analyst estimates slightly and considerably, respectively. In Other, EBIT before special items was weaker than expected by analysts on average.
The BASF Group’s EBIT amounted to an expected €1,867 million in the first quarter of 2023, considerably below the figure for the prior-year quarter (Q1 2022: €2,785 million) but considerably above the analyst consensus (Vara: €1,533 million).
Net income reached €1,562 million, considerably above the figure in the prior-year quarter (Q1 2022: €1,221 million) and considerably above average analyst estimates for the first quarter of 2023 (Vara: €1,081 million). In the prior-year quarter, impairments on the participation in Wintershall Dea had burdened net income of BASF Group.
Further information
The overview of analyst estimates, which is compiled monthly by Vara Research on behalf of BASF, can be found at: www.basf.com/analysts-estimates.
BASF will publish the Quarterly Statement Q1 2023 on Thursday, April 27, 2023, at 7:00 a.m. CEST and will comment on the figures at the conference call for analysts and investors (from 8:00 a.m. CEST).
https://www.basf.com/global/en/media/news-releases/2023/04/p-23-182.html
April 12, 2023
Analysts Getting Bullish on Chemical Stocks
Dow, chemical makers upgraded at Piper Sandler
Apr. 12, 2023 8:12 AM ETDow Inc. (DOW), EMN, LYB, WLK, CE, MEOH, ASIX, OLN, MX:CABy: Rob Williams NY, SA News Editor1 Comment
Dow (NYSE:DOW) and several other chemical makers late Tuesday were upgraded by analysts at Piper Sandler.
The U.S. chemical companies have a significant advantage over global rivals in setting the prices of their products because of lower costs of raw materials.
“These upgrades are not based on global economic recovery (which would only serve to amplify the outcome), but on shifting energy values and the ensuing supply adjustments that we see occurring,” Charles Nelvert, senior research analyst at Piper Sandler, said in the April 11 report. “We see a number of tailwinds developing that should create substantive benefits for chemical industry margins, primarily for North American production.”
| Piper Sandler ratings for chemical makers, April 11 | |||
| Current | Previous | ||
| Dow Inc. (DOW) | Overweight | Neutral | |
| Eastman Chemical Co. (NYSE:EMN) | Overweight | Neutral | |
| LyondellBasell Industries N.V. (NYSE:LYB) | Overweight | Neutral | |
| Westlake Corp. (NYSE:WLK) | Overweight | Neutral | |
| Celanese Corp. (NYSE:CE) | Neutral | Underweight | |
| Methanex Corp. (NASDAQ:MEOH) | Neutral | Underweight | |
| AdvanSix Inc. (NYSE:ASIX) | Overweight | – | |
| Olin Corp. (NYSE:OLN) | Overweight | – |
April 11, 2023
Green Shoots
Morgan Stanley sees freight upcycle nearing
Shippers becoming less negative on economy, transportation needs
· Monday, April 10, 2023
Listen to this article
0:00 / 4:30BeyondWords
A dash of optimism around improving freight demand in the back half of the year was noted in a quarterly survey of shippers released Monday.
Morgan Stanley’s (NYSE: MS) Freight Pulse showed sentiment among the group improved slightly even as data points have yet to point to an upward trajectory for freight markets. Of shippers polled, 38% said they will likely maintain current inventory levels, which was a 10-percentage-point increase from the fourth-quarter report. The number of respondents saying they need to reduce inventories also declined for the first time since the third quarter of 2021.
Nearly 75% of shippers surveyed expect inventories to normalize in 2023, with almost 50% saying it will happen in the second half of the year.
“Despite all the bad headlines and mixed datapoints on macro, our latest quarterly Shipper Survey keeps showing signs of improvement under the surface,” stated Ravi Shanker, Morgan Stanley transportation equity analyst.
Heading into the first-quarter earnings season, which starts in earnest next week when J.B. Hunt (NASDAQ: JBHT) reports, many analysts are taking a wait-and-see approach to the back half after being more bullish to start the year.
Outlook improves among shippers, capacity to stay loose
Shippers’ overall view of the economy also moved higher for the second consecutive quarter. However, a 4.9 reading remained “comfortably below” the 15-year-old survey’s long-term average of 5.8. Shippers from the manufacturing and food and beverage verticals were most constructive while responses from retail shippers saw the biggest declines.
The outlook for transportation capacity across all modes loosened again.
Capacity predictions for the next six months were the loosest for airfreight and ocean, while rail capacity is expected to be the tightest. However, the outlook for rail capacity saw the biggest sequential deterioration out of all modes.
The outlook for both volume and pricing growth in trucking was described as “pretty grim,” with volumes “consistently in negative territory (similar to 2020 levels but slightly better than 2009 levels).” Pricing sentiment saw the biggest declines ever recorded, down in the low-single-digit range. However, the report pointed out that the comparisons were to record price levels.
FreightWaves’ trucking data has yet to inflect positively. Rejected tenders continue to bobble along the bottom alongside spot rates.
There was no change in truckload capacity expectations, with most respondents indicating intermodal will soon be the loosest mode after being the tightest over the last three quarters. Even with lower TL rates and rail service issues, 43% of shippers said they are shifting some freight from TL to the rails. This was the first increase in a year for the metric with only 25% saying they would make the change a quarter ago.
The report also showed rail volumes will be flat year over year (y/y), down from a 0.7% growth expectation last quarter. Pricing expectations stepped slightly higher but remained below the long-term average. Shippers said rail service has deteriorated, almost reaching the survey low established in the third quarter of last year.
Expectations for parcel call for slight y/y volume growth (except for airfreight) with the rate outlook snapping back into positive territory.
“We are not sure what the macro outlook holds in store for us but what is very clear is that at the current pace of destocking, inventory levels should be normalized soon and if the consumer holds up in 2H23, conditions are ripe for a restocking upcycle (esp. if we also overcorrect on inventory destocking),” Shanker said.
April 6, 2023
SSB Update
Serta Simmons Bedding, LLC
Case # 23-90020
Judge David R. Jones
Jurisdiction Texas – Southern District
Filed Jan 23 2023
Manufacturing
- Overview
- Dockets
- Claims
- Key Documents
- Adv. Proceedings
Case Information
On January 23, 2023, Serta Simmons Bedding, LLC and thirteen (13) U.S. affiliate companies (collectively, the “Debtors”) each filed petitions in the United States Bankruptcy Court for the Southern District of Texas seeking relief under chapter 11 of the United States Bankruptcy Code. The Debtors’ cases have been assigned to Judge David R. Jones. The Debtors cases are jointly administered for procedural purposes, meaning that all pleadings are maintained on the case docket for Serta Simmons Bedding, LLC, Case No. 23-90020 (the “Main Case Docket”). The Main Case Docket can be accessed through the website maintained by the United States Bankruptcy Court for the Southern District of Texas (https://www.txs.uscourts.gov). An unofficial version of the Main Case Docket is accessible by selecting the “Dockets” tab above.View Less
Case Actions
- Proof of Claim Form
- File a Claim
- E-Ballot
- E-Opt Out
- Docket Alerts
- Service List
- Submit Inquiry
- RSS Feeds
Equity Transfer Procedure Documents
• Notice of Substantial Stock Ownership
• Notice of Intent to Purchase, Acquire or Otherwise Accumulate Dawn Stock
• Notice of Intent to Sell, Trade or Otherwise Transfer Dawn Stock
• Declaration of Intent to Claim a Worthless Stock DeductionView Less
Press Release
Restructuring Information
The company is operating as normal and is serving retail partners and sleepers as usual. SSB’s manufacturing facilities are fulfilling orders, and the company is continuing to work with suppliers and vendors in the ordinary course of business. SSB also has meaningful launches planned for this year from Serta and Beautyrest.
For information and inquiries about this matter, please call the numbers listed below. U.S.-based parties should use the toll free number below. International parties should use the non-U.S. number below.
Toll Free U.S. #: (877) 618-5414
Non U.S. #: +1 (503) 966-3043
Additional information regarding the court-supervised process is available on SSB’s restructuring website, www.SSBRestructuring.com.
Supplier Frequently Asked QuestionsView Less
Key Dates
23
JAN
10:02 PM CT
2023
ADD TO CALENDAR
24
JAN
01:00 PM CT
2023
ADD TO CALENDAR
27
JAN
03:30 PM CT
2023
ADD TO CALENDAR
1
FEB
12:00 PM CT
2023
Continued Scheduling Conference
ADD TO CALENDAR
1
MAR
01:00 PM CT
2023
ADD TO CALENDAR
14
MAR
10:00 AM CT
2023
ADD TO CALENDAR
16
MAR
05:00 PM CT
2023
ADD TO CALENDAR
23
MAR
09:00 AM CT
2023
ADD TO CALENDAR
29
MAR
10:00 AM CT
2023
ADD TO CALENDAR
5
APR
01:45 PM CT
2023
ADD TO CALENDAR
1
MAY
04:00 PM CT
2023
ADD TO CALENDAR
8
MAY
09:00 AM CT
2023
Confirmation Hearing; Final Hearing re: Cash Management Motion
ADD TO CALENDAR
22
JUL
05:00 PM CT
2023
ADD TO CALENDAR
Section 341 Meeting of Creditors
Pursuant to Section 341 of the Bankruptcy Code, a meeting of creditors was held telephonically on March 14, 2023 at 10:00 a.m. (CT).
Notice of Chapter 11 Bankruptcy Case [Docket No. 187]
Debtors (14)
Lead Debtor 23-90020 Serta Simmons Bedding, LLC
Related Debtors
23-90019
Dawn Intermediate, LLC
23-90024
Dreamwell, Ltd.
23-90022
National Bedding Company L.L.C.
23-90021
Serta International Holdco, LLC
23-90027
Simmons Bedding Company, LLC
23-90025
SSB Hospitality, LLC
23-90026
SSB Logistics, LLC
23-90018
SSB Manufacturing Company
23-90030
SSB Retail, LLC
23-90023
The Simmons Manufacturing Co., LLC
23-90029
Tomorrow Sleep LLC
23-90028
Tuft & Needle, LLC
23-90031
World of Sleep Outlets, LLC
Dawn Holdings, Inc., Serta, Inc., Serta Canada Ltd., SSH Canada Holding Co., LLC, SSH Bedding Canada Co., and Simmons Caribbean Bedding, Inc. are not part of the filing.
March 31, 2023
Housing Starts Update
United States Housing Starts
February 2023 Data – 1959-2022 Historical
Housing starts in the US surged 9.8% from a month earlier to a seasonally adjusted annualized rate of 1.45 million in February of 2023, the highest in five months, and way above market forecasts of 1.31 million, in a sign that some confidence may have returned to the housing market, although mortgage rates and inflation remain elevated. Single-family housing starts were up 1.1% to 830 thousand and starts for units in buildings with five units or more surged 24.1% to 608 thousand, the highest since April last year. Starts soared in the Midwest (70.3% to 201 thousand), the West (16.8% to 347 thousand), and the South (2.2% to 796 thousand) but fell in the Northeast (-16.5% to 106 thousand). Compared to February 2022 however, housing starts were 18.4% lower. In January, housing starts were revised higher to 1.321 million from an early estimate of 1.309 million, but remaining the lowest since June of 2020. source: U.S. Census Bureau
Everchem Updates Archive 
Sign Up for Email Updates