04 November 2008 10:18 [Source: ICIS news]
LONDON (ICIS news)--Croda’s third quarter continuing pre-tax profits rose 73% to £24.6m ($38.9m, €30.1m) driven by higher sales and synergies from the acquisition of Uniqema, the UK-based specialty chemicals producer said on Tuesday.
Sales increased 25% year-on-year to £246.7m as rising raw materials costs throughout the period were offset through price increases, Croda said.
“This was an excellent first half and, whilst recognising inflation and global economic trends, we’re confident of making further progress in the rest of the year,” said CEO Martin Flower.
The company said its average selling price per tonne was up 20.5% against third quarter 2007, due to price increases and from disposing of lower quality businesses.
Volumes decreased by 8% due to Croda strategy to shed low margin commodity business together with weakness in plastics additives and polymers and coatings sales.
Positive currency movements boosted the company’s turnover by 12.7%, due to the weakening of the pound against other major currencies.
Croda’s results were met favourably by investors, as the company’s stock surged 6.1% in early trading (09:40 GMT) to 560 pence.
($1 = €0.79, €1 = £0.63)
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