There are significant bottlenecks in the starting materials that Ems needs. Increases in selling prices were therefore inevitable. Although Ems manages to pass on the higher costs, a marginal pressure appears (purely mathematical). To amortize this, the company through the acquisition of new business expanded, but done well. Sales price increases contributed about 3 percentage points to sales growth of 12.5%. Currency effects represented a good volume of 4% and higher volumes around 5%.
Volume growth is more than double that of world car production, which has slowed to 2.4%. The sector contributes 60% of sales. Ems relies heavily on innovation, cost benefits for the customer and weight savings and could therefore grow faster than the relevant market. A car seat that saves 25 kilos thanks to an ingenious high-performance polymer metal replacement solution is an impressive example that must make the eyes of automotive leaders shine. However, Ems also can not decouple from the market
Reserve for the second half
The confirmation of the annual forecast with sales and operating profit slightly higher than the previous year reflects these uncertainties. "Easy over" means "Emserisch" but up to 10% more. As a result, the group starts with a reserve in the second half. It is far from certain that she must consume them. Without the extraordinary political events, it could continue as before, said Magdalena Martullo.
The FW estimate for earnings per share remains unchanged at the moment. She seems restrained now. The year-over-year forward price / earnings ratio has fallen 8% since the beginning of the year. This makes the note not cheap, but reasonably acceptable. The current price is about 27 times the earnings per share estimated for 2019. This can be justified by the proven high quality and attractive growth prospects, not just in the automotive sector. Unlike the neutral to negative valuation of securities firms, FuW considers that the securities are worth being purchased.
You can find the complete history of Ems-Chemie here. «
