11 May 2012 10:28 [Source: ICIS news]
LONDON (ICIS)--Spolchemie's synthetic resins business was hit by “unprecedented margin squeezes” during the first quarter, coupled with relatively weak demand , the Czech producer said on Friday.
“The year of 2012 will be a difficult year with the current generally weak economic environment,” the company said in a statement.
“Results remain acceptable due to aggressive management actions to control costs and increase prices,” it added.
Spolchemie revised its net profit for 2011 slightly upwards to koruna (Kc) 194m ($9.95m, €7.68m) from the Kc186m figure it gave on 3 May.
The company reiterated that it was expecting a small decline in revenue in 2012 to Kc4.7m from Kc5.1bn in 2011, which was an all-time high for the producer.
While operating throughout 2011 on the basis of a standstill agreement with creditor banks, Spolchemie managed to pay off more than Kc400m of its Kc2.7bn of debt, the company said.
The firm's overall debt level was now “within a typical range for similar companies”, it added.
“We are still negotiating with the banks on the standardisation of our relationship. This would finish the restructuring and stabilisation process of the company which was started two years ago,“ added company CEO Paul Yianni.
($1 = €0.77)
($1 = Kc19.50, €1 = Kc25.25)
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