Poland Synthos Q2 net profit plunges on sluggish tyre sales

30 August 2013 21:47  [Source: ICIS news]

LONDON (ICIS)--Second-quarter net profit at Poland's major synthetic rubber producer Synthos fell to zloty (Zl) 89.1m ($27.5m, €20.8m) from Zl235m in the same period of last year on soft demand from tyre makers in China and the EU for styrene butadiene rubber (SBR), the company said on Friday.

Sales revenues for the second quarter of this year declined to Zl1.35bn from Zl1.63bn in the second quarter of 2012, it added.

Sluggish demand for tyres from automakers was compounded by recession-affected consumer demand for replacement tyres throughout the first half of this year, said Synthos, citing previously released data from the European Tyre & Rubber Manufacturers’ Association (ETRMA) that showed consumer replacement tyre sales dropped by 6% year on year from January to June 2013.

Second-quarter earnings were also hit by the flooding in the Czech Republic in early June, which caused Synthos to temporarily shut down plants including SBR and butadiene (BD) units at its Kralupy and Vltavou production site, said Synthos.

Another negative factor during the second quarter was unseasonably cold weather in central and eastern Europe that caused delays in construction work. This had a knock-on effect on Synthos’s sales of styrenics, it added.

($1 = €0.76, $1 = Zl 3.24, €1 = Zl 4.29)

By: Will Conroy
+44 20 8652 3214

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