High costs to hit margins, says British Polythene

03 July 2008 08:59  [Source: ICIS news]

MUMBAI (ICIS news)--British Polythene Industries (BPI) said on Thursday the rise in raw material costs for July will result in margin compression.

The firm expected its volumes to be mixed and its results for the first six months of the year to remain somewhat behind the same period for 2007, the polythene producer said.

“We continue to trade in line with this outlook for the first half and have coped well with yet another difficult period of substantial increases in both oil related raw material and energy costs,” BPI said

The firm had experienced a downturn in demand from customers in the UK construction sector and parts of its industrial business were weak, BPI said.

However, this had been balanced by very sound demand from agricultural and consumer related sectors, it added.

“We remain confident that, as with the cost increases of the last few years, we will recover margins as prices stabilise,” the company said.

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By: Aaron Rodrigues
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