Episode 1226: Think Tank: Poor Q2 results signal permanently lower growth, need for bold strategic moves
Collapsing second quarter financial results show that the industry may face permanently low growth, driving the need for radical business model transformation. - Q2 financial results show persistent downturn in sales, profitability- Europe chemicals still plagued by China-driven global overcapacity, higher production costs, poor downstream demand- BASF reports double-digit fall in net income, weighed by lower prices. Warns of second half risks from stronger price reduction, lower volume growth- Dow CFO said consumer durables, building and construction will likely remain weak through the rest of the year - Need for widespread closures to balance supply and demand- Chemical companies need to adopt radical new business models- End of China’s economic miracle means there will be no return to strong demand growth globally