Poland's Synthos doubles Q3 net profit on strong SBR margins

15 November 2011 16:22  [Source: ICIS news]

LONDON (ICIS)--Synthos almost exactly doubled its third-quarter net profit to zlotych (Zl) 282.8m ($87.3m, €64.1m) from Zl 142.0m a year earlier on continued strength in synthetic rubber margins, the Polish producer said on Tuesday.

Net revenues rose 44% to Zl 1.5bn from Zl 1.1bn in the same quarter of last year, while operating profit reached Zl 323.1m from Zl 164.7m, the company added.

Synthos said it had benefited from a synthetic rubber bull run throughout 2011 with strong replacement tyre demand on international markets leading to solid synthetic butadiene rubber (SBR) sales.

The replacement tyre market is the largest consumer of SBR, accounting for 75% of global tyre sales, according to ING bank.

“This is another good quarter from Synthos ... with revenue growth due primarily to the strong rubber boom in the [synthetic] segment,” said Dom Maklerski PKO, a Polish equities house, in a commentary on the results.

“Cumulatively, after [this year's completed] three quarters, the company can boast of a very strong cash flow and almost Zl 806m of cash in hand,” it added.

Synthos is Europe's second largest synthetic rubber producer and also a maker of styrenics.

($1 = €0.73, Zl 3.24)
(€1 = Zl 4.41)

By: Will Conroy
+44 20 8652 3214

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