PODCAST: Poor Q2 results signal permanently lower growth, need for bold strategic moves

BARCELONA (ICIS)–Collapsing second quarter financial results show that the industry may face permanently low growth, driving the need for radical business model transformation.

• Q2 financial results show persistent downturn in sales, profitability
• Europe chemicals still plagued by China-driven global overcapacity, higher production costs, poor downstream demand
• BASF reports double-digit fall in net income, weighed by lower prices. Warns of second half risks from stronger price reduction, lower volume growth
• Dow CFO says consumer durables, building and construction will likely remain weak through the rest of the year
• Need for widespread closures to balance supply and demand
• Chemical companies need to adopt radical new business models
• End of China’s economic miracle means there will be no return to strong demand growth globally

In this Think Tank podcast, Will Beacham interviews ICIS business solution specialist Nigel Davis, ICIS market development director John Richardson and Paul Hodges, chairman of New Normal Consulting.

Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS.

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