Poland's Synthos Q4 net profit up 248% on synthetic rubber sales

22 March 2011 17:48  [Source: ICIS news]

PRAGUE (ICIS)--Synthos's net profit for the fourth quarter of 2010 surged 248% year on year to zlotych 129m ($45.6m, €32.0m) on strengthening sales of synthetic rubber, the Polish company said on Tuesday.

Sales grew by 80% to Zl 614m, driven by the rallying price of styrene butadiene rubber (SBR), Europe's second-largest synthetic rubber producer added.

The quarter saw the company benefit from improved margins on synthetic rubber after heavy rains and flooding hit natural rubber production in southeast Asia, Synthos said.

"The synthetic rubber segment remained the main driver of the year-on-year improvement in the results and delivered 60% of the group's sales and 72% of the company's earnings before interest and tax (EBIT)," investment bank Wood & Company said in an investment note on the results.

"The EBIT margin improved to 18.2% from 7.0% in 4Q09, but was lower than the record high of 24.9% recorded in 3Q10," the bank added.

Synthos's sales of styrenes were flat year on year at Zl 262m, with the segment's EBIT margin of 5.4% significantly lower than the 10% recorded in the fourth quarter of 2009, the company said.

($1 = Zl 2.83, €1 = Zl 4.03)

For more on SBR visit ICIS chemical intelligence

By: Will Conroy
+44 20 8652 3214

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