14 May 2009 11:46 [Source: ICIS news]
LONDON (ICIS news)--British Polythene Industries (BPI) expects its financial results for the first half of the year to be ahead of the same period last year despite reduced demand and the difficult credit environment, the polythene film maker said in a statement on Thursday.
In advance of its annual general meeting on Thursday, BPI said capacity had been aligned with demand.
It also announced the closure of a small loss-making site in Cowdenbeath, Scotland, resulting in the loss of 34 jobs.
“Our restructuring programme is going to plan and we continue to expect a year of progress in 2009,” BPI said.
The company said it will take costs of just under £2m (€2.22m, $3m) in the first half of 2009 for the Cowdenbeath closure and a phased closure of facilities at ?xml:namespace>
“Input costs have moved lower helping margins to recover, although polymer costs have started to rise again in recent months,” BPI said.
“We anticipate that these costs will remain volatile but at much lower levels that we experienced a year ago.
“We have also benefited in our
BPI's full-year 2008 net profits fell 67% on reduced demand.
Silage stretch wrap demand was lower than expected at this point in the season because of credit issues and colder, drier weather in
Demand for pallet wrap for bricks, block and pavers, had been hit by the downturn in the construction sector, BPI said.
(£1 = €1.12/$1 = €0.74)
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