Fitch Ratings in a new report said that that it had revised down its already conservative profits expectations for most EMEA cyclical industrial sectors as the prospect of a significant upturn in economic conditions recedes further.
The report highlights significant differences between sub-sectors with German automakers, tyre manufacturers and Eastern European chemical companies having outperformed expectations whereas French automakers and steelmakers performing considerably worse than anticipated in June 2011.
Issuers mentioned in the report include ArcelorMittal, Lafarge, Stora Enso, Finmeccanica, Peugeot, Renault and Volkswagen.
The report is based on the aggregate forecasts for Fitch’s publicly rated issuers in the Basic Materials and Manufacturing sectors. It compares Fitch’s forecasts at end-June 2011 for 2011, 2012 and 2013 with, respectively, actual 2011 figures and Fitch’s forecasts for 2012 and 2013 at end-June 2012.