10 May 2007 14:19 [Source: ICIS news]
LONDON (ICIS news)--Trading volumes are sluggish, British Polythene Industries said on Thursday as it forecast a flat outturn for operating profits in the first half.
The plastics processor also said it may have to wait “some time” for relief from high raw material prices.
“Trading continues to be reasonable although volumes are more sluggish than we would like,” chairman Cameron McLatchie, said in a statement published to coincide with the group’s annual general meeting (AGM).
“With recent attritional increases in the cost of polymer, we are currently expecting the outturn for the first half, at operating level, to be no better than the first six months of last year on a pre-exceptional basis,” he added.
It is too early in the silage season to predict likely sales of silage stretch wrap for the year but BPI was detecting increasing global interest in the product, he added.
“The outlook for polymer prices looks as firm now as it did six months ago, with new capacity for ethylene continuing to be delayed and oil prices remaining high,” McLatchie said the first half of the year.
“We may have to wait some time for relief from high raw material costs,” he added.
BPI generated a profit from operations before exceptional charges of £10.4m ($5.2M/€7.0M) in the first half of 2006, down 5% compared with the corresponding period of the prior year. First half sales were up 2% at £230m.
($1 = £0.5/€0.74)
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