European Chemical Stocks Reach Record Highs

Many European chemical companies are projected to report strong earnings for the last quarter. Ahead of the earnings, the Euro Stoxx Chemicals Index has reach reached an all-time high as shown in the graphic below:


Source: Stoxx

Some of the reasons for this include the solid recovery in the industry since 2009, optimism on profits and more M&A in the industry. Further consolidation in the industry is likely this year.Earlier this month Belgium’s Solvay (SVYZY) agreed to buy Rhodia of France to expand its footprint in the fast-growing emerging markets. On April 21st Akzo Nobel(AKZOY) announced a 58% rise in first-quarter profits and said it will raise prices and cut expenses to mitigate the increasing cost of raw materials.

Though many of these chemical stocks have reached their 52-week highs recently, there is still potential for further growth. Some of the large European chemical firms are listed below for further analysis and consideration:

1.Arkema SA (OTC:ARKAY)
Current Price: $101.10
Country: France

2.Air Liquide SA (OTC:AIQUY)
Current Price: $ 28.48
Country: France

3.Linde (OTC:LNEGY)
Current Price: $ 17.40
Country: Germany

4.Bayer AG (OTC:BAYRY)
Current Price: $ 82.35
Country: Germany

5.Yara International (OTC:YARIY)
Current Price: $ 53.08
Country: Norway

Current Price: $ 39.75
Country: Germany

7.Syngenta (SYT)
Current Price: $ 71.02
Country: Switzerland

Note: Prices noted above are as of April 21, 2011

Disclosure: No positions

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