Recently, chemical giants have announced their first-quarter results. Affected by multiple impacts such as the global COVID-19 epidemic and the oil price war, the overall industry situation is poor and performance has declined. There are many companies. However, from the first-quarter financial reports of these giants, the high prosperity of some segments can be seen. Among them, the chemical sector related to disinfection and personal protection products has experienced significant growth.
Dow
Sales fell 11%
Dow The company released its first quarter 2020 financial results on April 30. Net sales were $9.8 billion, down 11% compared to the same period last year, primarily due to lower global energy prices that resulted in local prices across all business segments. decline. Compared with the same period last year, sales were down 2%, or 1% excluding hydrocarbons and energy. Food, health and hygienic packaging; cleaning surfactants and solvents; and coatings end market demand has increased. But these gains were offset by lower demand in polyurethane and silicone-based product applications, including automotive and durable goods. In addition, affected by the new coronavirus epidemic and the implementation of public health intervention measures, sales in China have generally declined.
Dow is taking immediate and additional proactive steps to further strengthen its financial strength. These actions include: further reducing capital expenditure target to $1.25 billion, a decrease of $750 million from 2019; cutting operating expenses by $350 million; and releasing an additional $500 million from working capital. In addition, Dow temporarily idled some production units to adjust production to balance market demand affected by restrictions on economic activities. On the operational side, ensuring the availability of critical products that are vital to consumers and help contain the global pandemic, such as hand sanitizer and materials to make personal protective equipment.
BASF (BASF)
Sales increased by 7%, income fell 6%
BASF released its first quarter financial report for 2020 on April 30. Sales in the first quarter were higher than those in the same period in 2019. Growth of 7% to 16.8 billion euros, driven by 4% sales growth. EBIT before special items was 1.6 billion euros, down 6% year-on-year, mainly due to significantly lower contributions from the Materials & Chemicals and “Other” business areas.
BASF predicts that the economic consequences of weak global demand and reduced production will have a serious impact on the company, especially due to the continued production shutdown in the automotive industry. The COVID-19 pandemic will also impact customers in other industries. BASF therefore predicts that the company’s sales will decline significantly in the second quarter of 2020 and will recover slowly in the third and fourth quarters. However, BASF said that how the situation will develop is still highly uncertain and cannot be predicted.
DuPont (DUPONT)
Revenue fell 3.6% and loss was 6.1 billion US dollars
On May 5, DuPont released its first-quarter financial report. The financial report showed that revenue fell by 3.6% compared with the same period last year. It was US$5.2 billion; a loss of US$610 million, compared with a profit of US$520 million in the same period last year.
Compared with the same period last year, DuPont’s performance in April this year showed a double-digit decline. Due to the impact of the COVID-19 epidemic, demand for DuPont’s personal protective products has increased, which has also disrupted industrial chains including the automotive industry, affecting DuPont’s second-quarter revenue or hitting the lowest point in its full-year performance.
Evonik
EBITDA fell 5%, net income 27% drop
Despite the slowdown in economic growth caused by the COVID-19 pandemic that has spread around the world, Evonik Industries has made a solid start in 2020. Sales in the first quarter were 3.24 billion euros, down only 1% from the same period in 2019; EBITDA in the first quarter was adjusted to 513 million euros, down 5% from the same period last year; net income was 181 million euros, down 27% from the same period last year, and free cash flow was 113 million euros, a decrease of 46 million euros compared with the same period last year.
Among the major business segments:
The resource efficiency business segment was basically the same, reaching 1.44 billion euros. Hydrogen oxide and peracetic acid producer PeroxyChem completed its first consolidated accounts, benefiting the business segment.
Reactive oxide products are generally developing well, including traditional applications as well as specialty products such as disinfectants.
Crosslinking agent products are also developing well.
Sales of coating additives, silicas for the tire industry and performance polymers declined slightly.
The Nutrition and Chemicals business segment fell slightly by 1% to 1.13 billion euros. The demand for essential amino acids in the animal nutrition business line increased significantly and was achieved at almost stable selling prices. Sales growth.
The pharmaceutical and health business line also performed well in pharmaceuticals and food ingredients, with sales increasing.
The functional materials business segment fell 9% to 472 million euros.Due to the impact of changes in sales in the first quarter of 2020, continuing operating EBITDA fell by 14% in Swiss francs to CHF 157 million. In particular, the weak performance of the care chemicals and aviation businesses, as well as the weaker catalyst profitability due to lower sales and currency effects. Despite this, EBITDA margin remained healthy at 15.4% compared with 15.7% in the same period last year due to the rapid and effective implementation of cost control measures.
ExxonMobil
Loss of US$610 million
ExxonMobil announced its 30-year plan on April 30 The company’s first quarterly loss, a loss of $610 million in the quarter, was due to the inclusion of $2.9 billion in “market-related” expenses. The company’s profit in the same period last year was $2.4 billion. Most of the losses were related to the company’s downstream operations, which refine oil into gasoline and other products.
As the global economic shutdown puts unprecedented pressure on oil prices, the company has cut its 2020 capital expenditure plan by US$10 billion and its budget by 30%.
Exxon Mobil expects to reduce production by about 400,000 barrels per day in the second quarter due to shrinking demand caused by the new crown epidemic, including the Permian in Texas and New Mexico. The basin will reduce production by approximately 100,000 barrels per day. However, the company will continue to invest in projects to increase future oil production. ExxonMobil’s oil production increased slightly in the quarter, thanks to a 9% increase in output from two of the company’s key projects: Guyana and the Permian Basin, the largest U.S. oil field.
PPG
The COVID-19 epidemic caused a loss of US$225 million
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On April 27, PPG announced its financial results for the first quarter of 2020, achieving net sales It was approximately US$3.377 billion, a year-on-year decrease of approximately 7%. Sales prices increased by more than 1%. Overall sales were down 8% from the same period last year, including a $225 million hit from the COVID-19 pandemic, which was about 6%. Unfavorable foreign currency translation impacted net sales by more than 2%, or approximately $75 million, while acquisition-related sales (excluding divestitures) contributed approximately 2% to sales growth. Net profit in the first quarter fell 22% year-on-year to US$243 million, and net profit in the same period last year was US$312 million.
Net sales of the high-performance coatings business in the first quarter were approximately 20.08 billion, a year-on-year decrease of nearly 5%. Profit was US$272 million, down approximately 8% year-on-year. Net sales of industrial coatings in the first quarter were approximately US$1.369 billion, down nearly 10% year-on-year.
AkzoNobel (AkzoNobel)
Revenue increased by 31%
AkzoNobel The release of the latest financial report for the first quarter of 2020 shows that despite the impact of the new coronavirus pneumonia epidemic, the company still achieved a 31% increase in adjusted operating income, reaching 214 million euros (the same period in 2019: 163 million euros); net income generated by overall operations was €114 million (compared to €65 million in the same period in 2019). However, sales in the first quarter fell 6% year-on-year.
HUNTSMAN
Performance exceeded expectations
On May 1, Huntsman announced its results for the first quarter of 2020, with revenue of US$1.593 billion and net income of $708 million, adjusted net income of $65 million, and adjusted EBITDA of $165 million. Net cash used in operating activities in the first quarter of 2020 was $40 million. Free cash flow in the first quarter of 2020 was $101 million. However, revenue from the polyurethane business decreased in the first quarter. Due to the decline in MDI sales prices in China and Europe, overall polyurethane sales declined slightly.
Huntsman reduced unnecessary inventory early and reduced capital expenditures by 30% (approximately $90 million) this year by deferring discretionary spending. At the same time, other measures were actively taken, including the suspension of share repurchases, and various cost reduction measures, which generated benefits. </p
