Crisis hits hard chemical industry

Sector's listed companies net BGN 30.4m loss for 2009

The chemical industry has been hit hard by the crisis, a Pari daily's analyses of listed companies' 2009 reports shows. The only company in the sector that avoided a slump is Vidin-based tyre manufacturer Vidachim. Its sales last year amounted to BGN 57.75 million, up 16.1% on 2008. The new products launched by the company had a positive effect on sales, the report reads.

Sales plunge

The sales of Gabrovo-based PVC pipe producer Kapitan Dyado Nikola plummeted 64.2% to BGN 10.6 million. The global economic downturn affected demand for the company's products. In absolute terms, Neochim was leader in net sales. However, the company reported a year-on-year drop of 62.3%. That was mainly due to the poor condition of the agricultural sector and its financing problems, the fertiliser maker said. The sales of Kauchuk and Polimeri fell 43.1 and 58.7% to BGN 13.3 million and BGN 19.3 million, respectively. Orgachim booked the smallest drop. The income of the paint producer declined 18.65% to BGN 106.4 million.

Investors upbeat

Despite their poor performance, companies in the sectors enjoy investors' trust. Astra Investments' Severin Vartigov pointed to the fact that drop slowed down in the last two quarters. According to Real Finance Asset Management's Daniel Dimitrov, the companies will swing to growth by this year's end.

In the red

The lower sales affected companies' profits and most of them booked losses for 2009. The sector's total net result was minus BGN 30.4 million. Neochim fared worst of all with a loss of BGN 19.4 million. Polimeri's earnings fell the most: 2,037% to BGN 8.8 million. Only Kauchuk was in the black, though its profit fell 18.6% to BGN 285,000