Finance & strategy
Presented by
Latest insight
M&A quarterly briefing: Activity picks up from COVID-19 lows
Chemical M&A activity bounced back fairly strongly in the third quarter, after the COVID-19 pandemic ground activity to a halt in the second quarter. M&A volumes and values both rebounded strongly, though they remained below year-ago levels.
Billion-Dollar Club data dive: Margins fall for second straight year
We take a closer look at some of the figures behind CW's Billion-Dollar Club, including profit margins, capital expenditures and R&D spending. While margins declined for the second consecutive year in 2019, there were variations in trends.
Stagnating demand, lower production, weaken Japanese earnings
Major Japanese chemical makers, including Mitsubishi Chemical, Toray Industries and Sumitomo Chemical, reported declines in quarterly income, citing stagnant demand and weakening market conditions caused by the COVID-19 pandemic.
Chemicals investment bank Valence Group adds new capabilities with Piper Sandler
Chemicals investment bank The Valence Group (New York, New York) will add $40 million to its parent company's annual revenues, and broaden its scope with new products and services.
COVID-19 outbreak puts strain on balance sheets
The precipitous drop in demand and volatility in financial markets that has resulted from the coronavirus disease 2019 (COVID-19) outbreak is causing many leading chemical makers to shift capital allocation priorities.
COVID-19: Sasol considers emergency rights issue, accelerated asset sales to reduce debt
Sasol (Johannesburg) said on Thursday it is considering a rights issue of new shares and an accelerated divestment program in excess of the current $2-billion target to raise funds and allay growing investor concerns about its debt.
COVID-19: ACC forecasts decline in US industrial production
The American Chemistry Council (ACC) is forecasting a 2.2% sequential decline in US industrial production in the first quarter of 2020, according to estimates from chief economist Kevin Swift.
COVID-19 to hurt Lanxess's 2020 earnings, company swings to net loss in fourth quarter last year
Lanxess said today it expects its core profit to drop in 2020 as the global coronavirus disease 2019 (COVID-19) outbreak looks set to weaken the company's supply- and delivery chains. It expects 2020 EBITDA to be €900 million–1.0 billion ($1.02–1.13 billion), including an impact from the COVID-19 epidemic of €50-100 million for the year.
COVID-19: Dow estimates $200-million EBITDA impact, "vast majority" of sites remain online
Dow, Inc. is forecasting the coronavirus disease 2019 (COVID-19) will reduce first-quarter EBITDA by around $200 million, approximately half of which is due to reduced sales in China.
GDP growth forecast sinks on COVID-19 fears
The growing economic impact of coronavirus disease 2019 (COVID-19) has resulted in significant downgrades to IHS Markit’s GDP growth forecasts.
COVID-19 clouds earnings outlook beyond the first quarter
The impact of coronavirus disease 2019 (COVID-19) appears increasingly likely to be felt by chemical companies into the second quarter, and possibly beyond, as the number of new cases mounts around the world.
M&A quarterly briefing: Volumes down slightly, but values up strongly
The trajectory of chemical M&A volumes and values diverged during the fourth-quarter of 2019. On a year-on-year (YOY) basis, M&A volumes were down by 7.1%, to 65 transactions, while values more than tripled, from $16.5 billion to $54.0 billion, according to CW data.
Geopolitics, sluggish Chinese economy dent Japanese firms' performance
Major Japan-based chemical companies have released their consolidated results for the fiscal first nine months ended 31 December 2019. Firms such as Mitsubishi Chemical, Toray Industries, Sumitomo Chemical, Asahi Kasei, Mitsui Chemicals, Teijin, Tosoh, and Ube Industries report declines in income citing lower demand and weakening market conditions caused partly by US-China trade friction.
New era of big M&A deals in Japan's chemical sector?
Japan's chemical industry witnessed the announcement of two major M&A deals between domestic companies in 2019. Showa Denko announced plans in December to acquire Hitachi Chemical from Hitachi Ltd. and other shareholders through a tender offer.
Chemicals stocks rebounded in fourth quarter
Chemical industry stocks rallied in the fourth quarter of 2019, as signs emerged that the weak industrial economy may be strengthening. The CW75 index increased by 7.9% during the three months ended 7 January 2020, the most recently available data.
Slower economy weakens South Korean earnings
Major South Korean chemical companies' third-quarter results reflect a slowing in the country's economy.
Billion-dollar-club data dive: Margins slip in 2018 because of decline in APAC
While DowDuPont, Sinopec, and BASF topped CW’s billion-dollar-club ranking for 2018, looking at the industry’s leaders by other metrics can reveal other leaders—and laggards. Here we will take a look at profitability, investment, and some other important metrics for the industry.
US companies adjust to weaker earnings outlook
An increasingly difficult economic outlook hung over second-quarter earnings announcements in the US, with most firms expecting a sluggish second half.
M&A; quarterly briefing: Volumes and values rise in second quarter
Chemicals M&A volumes and values rose on a year-over-year (YOY) basis in the second quarter of 2019, continuing a bull run for M&A even amid growing signs of economic weakness. Deal volumes were up by 8.3% YOY to 65, while deal values increased 23.3% to about $24.3 billion.
US-China trade tension, low demand, sluggish Chinese economy squeeze Japanese firms
Major Japan-based chemical companies have released their consolidated results for the fiscal first quarter, ended 30 June.
GDP growth forecast remains stable
IHS Markit’s global GDP growth forecast was broadly stable this month, at 2.8% for 2019. The forecast was revised slightly upward for the US and Japan, and slightly downward for the eurozone, UK, Brazil, and Russia.
Hexion looks beyond debt burden
Hexion, the long-troubled maker of formaldehyde, phenolic resins, and epoxies, has finally turned a corner after three-month stint in Chapter 11 bankruptcy protection. The Chapter 11 filing reduced Hexion’s debt burden by over $2.0 billion, and upon exit the company secured $2.0 billion in exit financing and $300 million in equity capital.
Dow, DuPont target efficiency in capital allocation
The new Dow and DuPont discussed their plans for capital structure and allocation at investor events last month. DuPont, which is moving $2 billion in revenue to non-core assets, is aiming to generate $160 million in synergies over the next year chiefly from an operational improvement program in man….
M&A quarterly briefing: Big drop in activity as 2018 wound down
Fourth-quarter M&A deal activity declined substantially from the year-ago quarter as 2018 drew to a close, according to CW's M&A data.
Equity market correction takes hold in chemicals
A broad decline in equity markets in recent months, especially in the second half of 2018, has resulted in tumbling prices for chemical stocks.
Asian M&A in flux
Chemicals M&A in Asia is in a state of flux as China — the region's most important market – responds to the Trump administration's confrontational trade policies, as Japanese buyers look abroad and the industry in multiple countries looks to move downstream.
Featured data
Global GDP forecast revised upward slightly, but 2021 downgraded
IHS Markit now expects global GDP to contract by 4.4% this year, as conditions continued to improve. However, a surge in COVID-19 cases has reduced expectations for 2021.
WPC 2020 Online: Global ESG Investor Overview
