25th Oct 2019 09:27
(Alliance News) - Essentra PLC on Friday maintained annual profit expectations as it reported a 2.9% drop in like-for-like revenue for the third quarter of 2019.
The plastic injection moulded components manufacturer said third-quarter underlying revenue was broadly flat year-on-year, despite Brexit problems and a more difficult environment.
The Milton Keynes-based company, which also manufactures packaging materials and cigarette filters, said comparable revenue for the Components division declined modestly in the third quarter due to a softening of US and China markets, partially offset by continued pricing initiatives.
Total Components unit revenue was marginally up on the prior year period.
The Packaging business record mid-single digit underlying revenue growth in the quarter, in line with the company's expectations, amid new business wins.
The Filters business suffered a fall in revenue, Essentra said, but it expects this to reverse in the final quarter and said the unit has now secured a first "significant" outsourcing deal worth GBP8 million in annual revenue.
"We remain focused on delivering the strategies for each of the three divisions, whilst proactively taking cost action to offset the impact of a softer macroeconomic environment. Accordingly, our expectation for 2019 remains unchanged. I am pleased with the progress made in one of the potential Filters 'game changers', along with the benefits of a simpler operating and reporting structure across the whole organisation," Chief Executive Paul Forman said.
Essentra shares were down 1.9% in London at 415.00 pence each on Friday morning.
By Tapan Panchal; [email protected]
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