12 March 2013 17:29 [Source: ICIS news]
LONDON (ICIS)--Poland's IDMSA has raised its recommendation on the stock of major synthetic rubber producer Synthos to 'buy' from 'hold', citing the optimism the Polish company's management is showing despite the challenging operating environment, the financial services company said on Tuesday.
Although Synthos' profitability is under pressure from depressed European car and tyre markets, its management is promising a rewarding dividends policy, IDMSA said.
Synthos’ management has guided analysts that, although there are more obstacles to making standard synthetic rubber sales in the current European economy, the company believes it can capitalise on opportunities to sell higher-margin rubbers that meet new EU environmental demands in terms of noise, tyre performance and fuel economy.
Synthos, also a styrenics producer, was capable of earning a 2013 net profit of Polish zloty (Zl) 684.6m ($215.3m, €165.3m) compared to the Zl 586.3m and Zl 960.3m figures it recorded in 2012 and 2011, respectively it added.
Revenues for this year would probably come in at around the same level that was achieved last year – Zl 6.2bn – and beat 2011's Zl 5.4bn, IDMSA said.
($1 = €0.77, $1 = Zl 3.18, €1 = Zl 4.14)
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