UK's BPI reports 67% drop in full-year net profit

02 March 2009 09:42  [Source: ICIS news]

LONDON (ICIS news)--British Polythene Industries (BPI) posted a 67% drop in full-year 2008 net profit to £2.8m ($4.0m/€3.2m) compared with £8.5m in 2007, the plastic bags and films manufacturer said on Monday.

Sales increased 13% to £481m from £424m reflecting the pass-trough of higher input costs, BPI said.

BPI said profits were impacted by high raw materials cost in the first three quarters of the year and by soaring energy costs, especially in the fourth quarter.

The group was hit by a significant drop in demand from the construction sector, which normally accounts for about 15% of group turnover, causing the closure of its Stockton site.

“The current year has started in line with expectations and a number of key factors have moved in our favour,” said BIP chairman Cameron McLatchie.

“We have taken the necessary steps to eliminate excess capacity, reduce our cost base and invest in growing markets and we are confident that this will result in improved returns in future years,” he added.

($1 = €0.79, €1 = £0.88)

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By: Mark Watts
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