To: Venditâ„¢ who wrote (529 ) 3/24/1999 1:42:00 AM From: AugustWest Respond to of 684
"G"? Like G rowth in G lobal battery demand?Global battery demand seen increasing 7.8 pct CHICAGO, March 23 (Reuters) -Global demand for batteries is seen rising 7.8 percent annually through the year 2002 to $55 billion, with the increase fueled in part by demand for rechargeable batteries used to run devices such as laptop computers and cell phones, according to a study released Tuesday. The market for dry cell batteries, or batteries that are not rechargeable, will also benefit from firming cyclical fundamentals, particularly in Western Europe, the study by Cleveland, Ohio-based consultants The Freedonia Group said. The study also noted that demand for batteries used to power electric vehicles is also expected to grow in coming years. Prospects are also favorable within developing regions like East Asia, parts of Latin America and Russia, provided that economic woes do not linger, the study said. Demand for batteries in the U.S. is seen slowing from the average pace of 7.8 percent seen in 1992-1997, as that country's economic expansion ages, it said. U.S. battery demand is seen increasing 6.6 percent annually through 2002 to $12.5 billion, while shipments of U.S. batteries are seen increasing 6.7 percent through 2002, the study said. In the U.S. slower growth is seen for products such as motor vehicles, machinery and portable electronic devices. Demand for portable computers and next-generation personal communications devices are seen driving continued demand for rechargeable batteries. Rechargeable batteries are seen with the best U.S. growth prospects, with demand rising 7 percent through 2002 to $8.1 billion. Demand for batteries for notebook computers and wireless phones will also show strong growth, the study said. U.S. makers of alkaline batteries are also seen benefiting from the ongoing conversion away from carbon-zinc batteries throughout the world, the study said. Dry cell battery demand in the U.S. is seen increasing 5.8 percent per year through 2002 to $4.4 billion. The slower growth rate in that segment is due to the maturity of the market. The best growth prospects in that segment are seen in alkaline batteries as well as designs with higher energy densities, like zinc-air and lithium. Major world battery suppliers include Eveready Battery Co. a subsidiary of Ralston Purina (NYSE:RAL - news); Duracell, a unit of Gillette Co (NYSE:G - news) and Matsushita Electric Industrial Co. Ltd. , which makes Panasonic brand batteries; and Rayovac Inc. (NYSE:ROV - news).