06 August 2013 13:08 [Source: ICIS news]
LONDON (ICIS)--UK foam producer Zotefoams reported a 28% year-on-year fall in net profits in the first half of the year to £1.99m (€2.31m, $3.06m) on the back of weaker polyolefin foams demand, the company said on Tuesday.
Zotefoams said that demand for the materials was impaired by economic weakness in continental Europe and reductions in customer inventories due to shorter lead times.
“With our investment in production capacity for Azote polyolefin foams we have been better able to serve our customers by reducing order lead times. This improvement in customer service has led to destocking that has been particularly evident in Germany and Japan,” the company said.
Group revenues fell by 6% year on year to £23.2m, and pre-tax profits were down 28% to £2.52m, Zotefoams added.
High-performance polymers foams sales increased by 15% year on year during the period to £1.97m, driven by North American aviation sector sales.
The company has launched a joint venture with Japan’s INOAC Corporation last month to market its polyolefin foams in Asia in the mid-term, Zotefoams added.
“While being mindful of economic uncertainty, particularly in continental Europe and somewhat reduced visibility due to our improved order lead times, we expect higher sales in the second half and an overall performance for the full year that will be similar to last year,” said chairman Nigel Howard.
($1 = €0.75, €1 = £0.86, $1 = £0.65)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections