British Polythene expects better first-half results

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 Stockton.

“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 UK operations from a more favourable rate of exchange, assisting our export sales and reducing price pressure from imports.”

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 Europe, BPI said.

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)

To discuss issues facing the chemical industry go to ICIS connect

By: Nigel Davis
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly