4th Jul 2006 07:00
Devro PLC04 July 2006 DEVRO PLC 4 July 2006 TRADING STATEMENT In line with good practice and commencing today, Devro intends providingshareholders with trading updates in advance of the start of its close periods.Interim results are scheduled for 6 September 2006. As reported at the AGM, the first half has seen weaker than expected sales inthe US and in some South East Asian markets, while the strength of the Czechcurrency continues to have an adverse effect on the value of Cutisin's exportbusiness. Manufacturing continues to face pressure from significantly increased energyprices while variability in the quality of part of our collagen raw material hasled to a period of reduced production efficiency in our Australian and USoperations. The financial effect of this latter issue, which has been addressed,is expected to be confined entirely to the first half. Our investment activity in Cutisin is well advanced and the new plant isscheduled to begin producing commercial product during the third quarter.Productivity from the new manufacturing process is expected to be significantlyhigher than originally anticipated and, as a consequence, substantial additionalvolume will be available in 2007 to meet the strong demand for Cutisin products,particularly in Eastern European markets. Overall, while the first half has been weaker, the outlook for the latter stagesof 2006 into 2007 and beyond, continues to be very encouraging. Enquiries: Mark Antelme Brunswick 020 7404 5959 Notes to editors: Devro (www.devro.plc.uk) is the world's leading manufacturer of collagenproducts for the food industry. In addition, the company manufactures a range ofplastic casings, supplies customers in the food industry with a range ofdistributed products and also supplies pure collagen raw materials for use inthe healthcare industry. With manufacturing facilities in three continents and2005 revenue in excess of £150m, Devro products are sold worldwide. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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