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Deutsche Bank: Slowing Volumes and Rising Costs Will Pressure Second-Quarter Earnings; Specialty Makers Are Hardest Hit (update, adds earnings)

July 14, 2008 | Kerri Walsh

Second-quarter European chemical industry earnings will continue to be squeezed by slowing volumes, unfavorable currency exchange rates, and rising raw material costs, “but with some modest worsening” compared with the first quarter, says a report issued today by Deutsche Bank (London) analyst Tim Jones. Second-quarter volumes will be “reasonable” because of strengthening demand in Asia, but companies are expected to report a slowdown in growth, particularly in Europe, Jones says. U.S. markets continue to lag, he says. “On costs, there is little room...

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