23rd Oct 2013 10:00
LONDON (Alliance News) - Shares in Zotefoams PLC dropped 7.1% Wednesday as it issued a profit warning, saying that it expects its full-year profits to be below previous expectations.
Zotefoams produces cross-linked block foams, primarily used in packaging, construction and other markets.
An unexpected shortfall in shipments to some European polyolefin customers had led to third quarter sales in the company's at the same level as the previous year and below expectations. The falls were mainly due to larger customers responding to continued de-stocking in the downstream market, effecting levels of demand in the short term.
Zotefoams expects this trend to continue for the remainder of the year, but hopes it will be offset by its shorter lead times. It considers the impact of this short-fall to be short-term and expects a return to growth in 2014.
Foreign currency rates have also been unfavourable in the third quarter, and Zotefoams warned that the adverse impact was in the region of GBP400,000.
Shares in Zotefoams were trading down 7.1% at 177.50 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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