10th Feb 2016 07:55
LONDON (Alliance News) - Victrex PLC on Wednesday said its overall performance in the first quarter of its financial year was dragged down by its consumer electronics division and its oil & gas unit, as revenue dropped 6% from last year.
The self-described "world leader" in high performance polymer solutions said its performance outside those two divisions was "solid" in the first quarter ended December 31, with the medical division, Invibio, showing a small year-on-year improvement, it said.
"Whilst the first quarter of 2016 was softer compared to the first quarter of 2015, this reflects the expected lower volumes in consumer electronics and oil & gas, where the prior period comparatives are tougher and a worsening environment in that market since our 2015 preliminary results," said Victrex.
Those two divisions ultimately brought overall group revenue down 6% to GBP56.0 million in the first quarter from the GBP59.8 million reported a year ago. Group sales volumes were down 11% to 860 tonnes in the first quarter compared to 967 tonnes a year ago.
"Based on the outlook for oil & gas and lower consumer electronics volumes, we expect this softness to continue through the first half year. Compared to previous guidance, volumes from the consumer electronics opportunity will now be much more weighted to the second half, to reflect product launch cycles," said Victrex.
"Extending existing business and capturing value-added business in our markets beyond 2016, including across the whole of Consumer Electronics, remains our focus," it added.
Chef Executive David Hummel said the company remains "comfortable" with its full-year expectations.
By Joshua Warner; [email protected]; @JoshAlliance
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