Synthos’s Q2 results exceed market expectations

01 September 2010 11:41  [Source: ICIS news]

PRAGUE (ICIS)--Synthetic rubber producer Synthos exceeded market expectations with its second-quarter results, investment bank Wood & Company said on Wednesday.

The Polish company's net profit for the second quarter rose by 53% year on year to zloty (Zl) 111m ($35.1m, €27.7m), with synthetic rubber and latex sales up 75% at Zl 469m.

Sales revenues increased by 50% to Zl 966m.

Styrene butadiene rubber (SBR) markets remained extremely favourable for producers, with prices in the quarter peaking at €1,800/tonne, Wood & Company noted.

“There was also a significant recovery recorded in the styrenics segment,” the bank added. “Sales grew by 31% year on year to Zl 408m and were 15% higher than our expectations, while [styrenics] earnings before interest and tax (EBIT) grew by 35% year on year to Zl 22m.“

Synthos said its smallest segment, dispersions, posted an operating loss of Zl 2m. Wood & Company said this was a result of the difficult market situation in the construction sector, which was caused by a long winter and floods.

($1 = Zl 3.16, €1 = Zl 4.01)

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By: Will Conroy
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