German Chemicals Industry Forecast
German chemicals industry cuts 2015 outlook for revenue, prices
FRANKFURT Wed Feb 25, 2015 4:00am EST
Feb 25 (Reuters) – German chemicals trade group VCI on Wednesday cut its forecast for industry revenue and prices charged to customers in 2015, as lower oil prices lead to product mark-downs and amid weak growth in Germany and the rest of Europe.
VCI said it expected industry sales at Germany-based chemicals and pharmaceuticals businesses to fall 0.5 percent this year to 192.2 billion euros ($218.6 billion), while product prices are seen 2.0 percent lower.
In December, VCI had still expected industry revenue to gain 1.5 percent and prices to fall by 0.5 percent.
"Apart from the crisis year 2009, it's the first time since 2002 that we have to report a decline in revenues," said VCI's managing director Utz Tillmann.
The chemicals industry was not able to benefit from a growing German economy toward the end of the year "as the lower oil price raised hopes among customers of a further decline in chemicals prices", the lobby group said.
VCI, which represents Germany's third-largest industrial sector, kept its forecast for industry output in 2015, which it still sees growing by 1.5 percent.
Revenues in the fourth-quarter of last year were down 0.2 percent from a year earlier, on 0.8 percent lower output volumes and 0.9 percent lower prices.
The largest German chemical companies are BASF, Evonik and Bayer. Major foreign producers such as Dow Chemical and LyondellBasell also operate sites in Germany, which is Europe's largest chemical producing nation. ($1 = 0.8794 euros)
(Reporting by Patricia Weiss; Writing by Ludwig Burger and Christoph Steitz; Editing by Kirsti Knolle)
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