It’s not great news, it’s not unexpected news, but it’s certainly not all bad news. Some sectors didn’t perform poorly, including personal care, nutrition and HI&I. As Mr. Dickson points out, the key to success will be learning and adapting to what is happening in each segment – and being nimble enough to respond.
Chemical companies preview second-quarter COVID-19 impact
Chemical companies navigating the economic impact of COVID-19 will be reporting second-quarter sales and earnings in the coming weeks, and early indications are that the figures won’t be pretty. Economists are expecting a global rebound in the third quarter, but chemical industry watchers say some markets, namely automotive and aerospace, will continue to be troubled, possibly for years. The chemical makers BASF and Covestro and the paint and coatings firm AkzoNobel have given investors a preview of the magnitude of the impact that COVID-19 slowdowns had on second-quarter sales and earnings. All three say businesses serving automotive manufacturing had a rough season, while some other major segments kept pace with last year. “The effects of the COVID-19 pandemic will likely echo well beyond 2020, and the crisis provides an opportunity for companies to learn and adapt,” Duane Dickson, chemical leader for Deloitte, wrote in the report.