Finance & acquisitions

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….

Higher raw material costs, China slowdown, trade tensions hurt Japanese firms

Major Japan-based chemical companies have released their consolidated results for the fiscal first nine months, ended 31 December.

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.

High valuations do not stop flavors and fragrances deals

Persistently high valuation multiples have done little to stymie M&A in the growing flavors and fragrances (F&F) market. One of 2018's biggest chemical deals—IFF's $7.1-billion acquisition of Frutarom—catapulted IFF into a near-tie with Givaudan for the largest F&F company by sales.

Featured data

CW75 multiple trends for 2019

The average trailing price-to-earnings (P/E) multiple in the CW75 index has increased somewhat in recent weeks, as markets begun to recover after several weeks in the doldrums. 

Podcast

First-quarter earnings in Europe

IHS Markit VP Lyn Tattum and CW's Ian Young discuss first-quarter earnings, with a focus on Europe.