Margin Maintenance

Chemical makers cannot control the global economy, but a focus on successful product development and cost control is helping maintain healthy margins despite weak demand. Price discipline and efforts to make sure that benefits from cost cutting during the recession stick have enabled profits to grow strongly in recovery. Volatility in demand and raw material costs belie what has been a fairly steady, and healthy, maintenance of Ebitda margins over the past year (chart). Chemical makers embraced the mantra of price before volume—or some variant—in...

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