EMS Chemie reports lower half-year sales, but confirms annual forecast

By Ozan Ergenay

July 11 (Reuters) - Swiss chemical company EMS Chemie EMSN.S reported half-year sales below last year's level on Friday, but confirmed its full-year targets despite weakening of the global economy driven by the trade war.

EMS makes lightweight polymer car parts that are especially useful in building electric vehicles, which typically weigh more due to their heavy batteries, and supplies them to the world's largest EV maker, China's BYD 002594.SZ, among others.

Its net sales fell 6.2% on the year to 1.02 billion Swiss francs ($1.28 billion) in the first half of 2025.

"As expected, the global economy cooled down further in the first half-year of 2025. Trade tensions and geopolitical conflicts subdued consumers and restrained their purchasing mood and willingness to invest," EMS said in a statement.

U.S. President Donald Trump's import tariffs have set off a global trade war that has roiled financial markets and sent policymakers scrambling to protect their economies, through efforts such as trade deals with the U.S. and other countries.

"We see a certain risk in potential U.S. tariffs on Swiss products," Vontobel analyst Sbiylle Bischofberger said. "But in general, we see favorable long-term growth trends in EMS' key markets."

EMS generates 12% of its sales in the U.S., with around 40% of those products made in Switzerland, according to Vontobel.

Bischofberger added that while the half-year sales were lower than expected, margins clearly improved and topped market forecasts.

The Swiss nylon maker's earnings before interest, taxes, depreciation and amortization were 323 million Swiss francs, with a margin of 31.7% in the January-June period.

Its shares were up 2.2% in early trading.

EMS said it expected the challenging economic environment and trade conflicts to interfere with global trade and supply chains, unsettling consumers and companies alike in 2025.

It still expects annual net sales below last year's level due to currency effects and a net operating income slightly above that of 2024.

($1 = 0.7976 Swiss francs)