30th Jul 2014 09:09
LONDON (Alliance News) - Specialty chemical company Victrex PLC said Wednesday it continues to trade in line with market expectations, as it saw sales volume rise 21% in the third quarter to end-June.
Victrex said sales had risen to 911 tonnes, up 21% from 756 tonnes in the previous year, as momentum continues in its core Victrex Polymer Solutions operations and new business in the consumer electronics market.
Year to date sales volumes were 2,495 tonnes, up from 2,147 tonnes.
In the company's Invbio medical business, revenue was up 3% in the third quarter as the Spine market started to recover.
Victrex expects its consumer electronics opportunity to come through "at a slightly softer" margin than its Victrex Polymer Solutions business, and it will be hedged at less favourable currency rates, Victrex warned. Consumer Electronics has a shorter life-cycle than much of the company's portfolio.
The prospects of consumer electronics, along with growth trends in its core and speciality products business, underpin Victrex's expectations for momentum through the fourth quarter and into 2015, it said.
Trading in the fourth quarter to date remains positive, Victrex said, but warned that the strength of sterling remains a "considerable headwind" for the next year.
Although it has a high capital expenditure programme, Victrex said its cash position remains strong.
Shares in Victrex were trading up 1.2% at 1,661.00 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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