30th Apr 2015 07:29
LONDON (Alliance News) - Specialty chemicals company Synthomer PLC Thursday said trading in the first quarter of 2015 was in line with its expectations, as a continued good performance in Asia offset some weakness in its European business.
Volumes in the group's Europe and North America business dropped slightly year-on-year in the quarter, against a tough comparable, but the group said it saw some margin benefits from falling raw material prices and said constant currency operating profit was slightly higher year-on-year, though it fell on a reported basis due to the weaker euro.
Synthomer added momentum in its Asian nitrile business seen in the fourth quarter has continued into the new year, with demand robust and margins improving. As a result, divisional operating profit for its Asia and Rest of World segment was substantially higher year-on-year.
The group said it is planning to expand nitrile capacity and expects to make an announcement in coming months.
FTSE 250-listed Synthomer expects Europe to remain challenging this year, both due to the general economic conditions in the region and the impact of the depreciating euro, but expects continuing robust demand for its Asian nitrile business and remains confident on for the medium and long term.
Shares in Synthomer were up 0.3% to 316.00 pence in early trade on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Synthomer