11 November 2008 04:31 [Source: ICIS news]
SINGAPORE (ICIS news)—China’s SunVic Chemicals has reported a near 70% rise in its net profits for its third quarter ended 30 September to Yuan (CNY) 26.85m ($3.93m)from CNY 15.84m year-on-year, the company said on Tuesday.
“This was mainly due to increase in average selling prices of acrylic acid (AA) and acrylate esters (AE) and partially offset by a slight decrease in sales volume due to the slow down during the Beijing Olympics 2008,” the company said.
Sales for the quarter rose nearly 33% to CNY 597.3m from CNY 450.3m in the previous corresponding period while operating profits surged 65.6% to CNY 38.76m year-on-year.
Despite the seemingly strong financial performance, the company’s management revealed that previous established full-year sales target of CNY 3bn and net profits of CNY 300m are unlikely to be met as a result of a sharp decline in demand and product prices from September.
“The transportation restrictions for dangerous chemical products placed by the People Republic of China (PRC) government in major cities and the shut-down of chemical plants around the Beijing region (including some of our customers),”the company listed as reasons for the inability to meet management targets.
Looking forward, the company expects for selling prices and material costs to remain volatile on the financial turbulence in the European and US regions.
“Management will continue its efforts to maintain cost efficiency. The slow-down in the Chinese economy is expect to continue into the fourth quarter and this will have a negative effect on our sales and profits for the rest of the year,” the company said.
($1 = CNY 6.83)
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