Oct 23 Reuters Swiss chemicals firm Ems Chemie said on Wednesday its ninemonth sales fell due to weak demand in its main markets Europe and China, and a strong Swiss franc, which appreciated as a safe haven currency.

The company maintained its fullyear guidance although it expects the weak market environment to persist in the fourth quarter.

WHY IT39;S IMPORTANT

Ems Chemie generates about half of its sales in the automotive market and is a supplier of the world39;s largest EV maker, China39;s BYD. The company makes lightweight polymer car parts, which are especially useful in electric vehicles, which typically weigh more due to heavy batteries.

CONTEXT

European automakers are hit with a sway of problems ranging from high production costs and tepid demand at home to challenges presented by vehicle electrification and competition from China, where consumers cut on spending due to a weaker economy. Ems Chemie makes most of its sales in Germany and China

KEY QUOTES

In China, the recently announced economic stimulus package will probably only have a positive effect and boost confidence in the medium term, the company said in a statement.

In Europe, no signs of structural political improvements or confidence are noticeable.

In the USA general disillusion may follow the presidential elections.

BY THE NUMBERS

Sales fell by 6.3 to 1.59 billion Swiss francs 1.83 billion in JanuarySeptember, a tad below LSEG39;s consensus of 1.60 billion Swiss francs.

1 0.8669 Swiss…