28th Oct 2014 07:42
LONDON (Alliance News) - Synthomer PLC Tuesday warned it expects lower profit in the full year and said earnings could be lower still if economic developments in Europe continue to deteriorate.
"At current run rates and given the current demand environment in Europe, the board now expects full-year profit before tax to be slightly below current consensus" of pretax profit of GBP87.8 million, the company said.
"We are cautious about performance in Europe given recent economic developments, and should this impact demand further than currently anticipated in the fourth quarter, then profit before tax is likely to be around the lower end of the current consensus range," currently GBP81.3 million to GBP90.3 million.
Volumes from its European and North America unit fell 3%, though margins improved, Synthomer said. However, year to date operating profit in local currencies was below last year, the company said.
In Asia and Rest of the World, volumes increased by 1.3%.
By Ian Edmondson
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