20 March 2012 11:41 [Source: ICIS news]
LONDON (ICIS)--Poland’s Ciech swung to a zlotych 8.8m ($2.8m, €2.1m) net loss in the fourth quarter of 2011, as very low toluene di-isocyanate (TDI) prices and group restructuring took a toll, the company said on Tuesday.
The loss compared with a Zl 81.6m net profit achieved in the same quarter a year previously, it added.
Sales revenues stood at Zl 1.02bn, compared with Zl 936.8m recorded for the final quarter of 2010.
Looking at Ciech’s net result for the whole year of 2011 – a profit of Zl 1.5m compared with a net profit of Zl 24.3m in 2010, with sales revenues up by 5.4% year on year to Zl 4.2bn – Ciech CEO Ryszard Kunicki said the company could be pleased that it managed to stay in the black.
Despite some of the lowest TDI prices ever seen and the burden of restructuring costs that had to be borne in 2011, Ciech managed to stay profitable in expectation of restructuring benefits that should be felt in 2012, he added.
TDI prices sank as key-end customers, such as the automotive and furniture industries, felt the impact of Europe’s renewed economic difficulties, said Ciech, which is also Europe’s second-largest maker of soda ash.
Any recovery trend in the prices would be linked to wider economic recovery in Europe, it added.
($1 = €0.76, $1 = Zl 3.10, €1 = Zl 4.11)
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