|
|
Article: A Free Cash Flow.(chemical companies and free cash flow)(Statistical Data Included)
- Article from:
- Chemical Market Reporter
- Article date:
- July 2, 2001
- Author:
CopyrightCOPYRIGHT 2001 Schnell Publishing Company, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Select specialty chemicals companies that serve broad-based, mature end markets have long term growth in line or slightly above growth in gross domestic product. Despite increasingly limited pricing power, these companies continue to generate significant cash flows. Indeed, we expect to see an increase in free cash flow in 2001 as the companies go into a late-year economic recovery with more disciplined capital spending plans, tight cost controls and a commitment to improving their margins and returns.
Free cash flow is often put forward as a proxy for earnings in valuation models. The focus on the availability of cash, it is argued, avoids some of the ...