29 August 2008 12:21 [Source: ICIS news]
LONDON (ICIS news)--British Polythene Industries (BPI) reported a 19% year-on-year fall in net profits for the first six months of this year on Friday, due to a rise in raw material costs and weaker demand.
Net profits came in at £5.2m ($9.5m/€6.5m) compared with £6.4m in January-June last year, the UK-based films producer said.
Operating profits were at £8.7m, a fall from £10.1m in the same period last year, while turnover rose 15% to £265.9m from £226m, it said.
The increase in turnover was achieved on overall flat volumes, and reflected increased input costs - both raw material and energy - during the period, which were passed on to BPI’s customers with a time lag, the company said.
“Trading over the first six months of the year has been challenging,” said Cameron McLatchie, BPI chairman.
“We have experienced steep increases in raw material input costs and reduced demand from customers in the industrial and construction sectors, although there has been sound demand from the agricultural and consumer related sectors,” he added.
McLatchie said that despite the short-term trading difficulties, the company remained confident of its medium- to long-term prospects.
($1 = €0.68/$1 = £0.55)
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