7th Apr 2014 06:59
LONDON (Alliance News) - Foils and packaging materials producer API Group PLC Monday warned that it expects its results for its last financial year to be at the lower end of expectations, after a recovery in the second half of the year proved not enough to offset the weak performance in the first half of the year.
The company had reported a weak fiscal first half back in December, and at that time predicted a second half recovery in the second half to the end of March.
In a statement Monday, the company said its holographics unit returned to breakeven in the final quarter of the financial year after realigning its cost base with lower sales, while results improved at its laminates business thanks to a new supply contract, and its European foils unit made "solid progress" after it reorganised its UK operations in the first half of the year.
However, volumes at the company's Americas foils division weakened unexpectedly in the last three months of the financial year, although the division's results for the year as a whole will be in line with those of fiscal 2103, the company said.
Still, the company expects to report a positive cash position for the first time in 15 years after capital spending was lower than originally planned and it reduced its debt.
"Investment in additional capacity in the foils businesses is scheduled to come on stream during the first half of the new financial year," it said.
By Steve McGrath; [email protected]; @SteveMcGrath1
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