Market Monitor - Chemicals performance - Switzerland

Market Monitor

  • Switzerland
  • Chemicals/Pharma

1st June 2015

Chemicals/pharmaceuticals has been a well performing sector in Switzerland; demand and profit margins are expected to remain stable in 2015.

Market performance at a glance 

Switzerland

  • The performance of the Swiss chemicals/pharmaceuticals industry has been strong for years, with most businesses showing good financial health. Businesses´ gearing is generally low, while banks are very willing to provide loans.
  • Many Swiss companies in this sector benefit from a geographically well diversified customer portfolio, which ensures a good risk distribution of their trade receivables.
  • As many Swiss chemicals/pharmaceuticals businesses have diversified their production sites outside Switzerland, they are among the Swiss export-driven sectors that are least affected by the appreciation of the Swiss franc.
  • Demand and profit margins in this industry are expected to remain stable in 2015.
  • The average payment duration in the Swiss chemicals/pharmaceuticals industry is 45 to 60 days. The number of protracted payments, non-payments and insolvency cases is traditionally low, and it is expected that there will be no change in the coming months.
  • Due to the general positive indicators, our underwriting stance continues to be relaxed for all segments of this industry.

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Disclaimer

The statements made herein are provided solely for general informational purposes and should not be relied upon for any purpose. Please refer to the actual policy or the relevant product or services agreement for the governing terms. Nothing herein should be construed to create any right, obligation, advice or responsibility on the part of Atradius, including any obligation to conduct due diligence of buyers or on your behalf. If Atradius does conduct due diligence on any buyer it is for its own underwriting purposes and not for the benefit of the insured or any other person. Additionally, in no event shall Atradius and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the statements made information herein.