30 August 2011 12:19 [Source: ICIS news]
LONDON (ICIS)--Ciech swung to a second-quarter net profit of zlotych (Zl) 10.7m ($3.7m, €2.6m) from a net loss of Zl 28.1m in the same period a year ago after benefiting from higher epoxy resin and epichlorohydrin (ECH) prices, the Polish group said on Tuesday.
Group revenues increased to Zl 963.3m from Zl 902.1m in the second quarter of last year, but operating profit fell to Zl 24.3m from Zl 40.5m, Ciech said.
The bottom line improved on higher revenues gained in particular from the company's epoxy resin and ECH segments, while soda ash revenues also saw some year-on-year improvement, Ciech said.
A buoyant Polish construction sector assisted sales, the company said in a commentary on its second-quarter earnings.
On the downside, Ciech suffered from higher soda ash input costs and pressure on the toluene di-isocyanate (TDI) margins of its Zachem unit resulting from rising oil derivative prices and increasing TDI capacities in China.
Ciech added that it was making good progress in paying down its debt thanks to lower interest and other benefits of the Zl 1.2bn refinancing deal the company secured with a group of banks at the start of this year.
($1 = Zl 2.87 , €1 = Zl 4.16)
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