By Alberto Chiumento
(Reuters) -Swiss nylon maker EMS Chemie reported a 4% decline in first-quarter net sales on Tuesday, citing market-driven lower prices and cost levels and warning of “a particularly challenging economic environment” in 2025.
The European chemical industry, long suffering from weak demand and high production costs, faces uncertainty as European leaders seek to dissuade U.S. President Donald Trump from imposing planned tariffs on U.S. imports of European goods.
The announcement of additional tariffs has contributed to inventory build-ups and persistent inflation in the United States, EMS Chemie said.
The group reported net sales dropped to 522 million Swiss francs ($634 million) from 545 million Swiss francs the previous year, but the results were in line with company forecast, which in February 2025 projected annual net sales to remain below levels seen in 2024.
“Sales were impacted by a subdued first quarter and a weakening global economy,” said Vontobel analyst Sibylle Bischofberger.
EMS added that in China economic stimulus packages announced by the government had not shown any effect yet.
EMS is a supplier of the world’s largest EV maker, China’s BYD . The company makes lightweight polymer car parts, which are especially useful in electric vehicles, which typically weigh more due to heavy batteries.
Bischofberger added that although ongoing sales initiatives showed some results, they were unable to offset the difficult environment.
EMS said in February – before the official U.S. tariff announcement in April – that it had taken steps to mitigate any impact from tariffs, and it “will remain unaffected”.
Vontobel estimates that its tariff exposure is around 5% of total sales.
The company reaffirmed its outlook for earnings before interest and tax, projecting a slight increase over levels seen in 2024.
($1 = 0.8237 Swiss francs)
(Reporting by Alberto Chiumento in GdanskEditing by Sherry Jacob-Phillips and Peter Graff)
