Market Monitor - Chemicals performance - Switzerland

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.