15 January 2014 10:46 [Source: ICIS news]
LONDON (ICIS)--UK-based foam producer Zotefoams said on Wednesday that it expects full-year sales revenues for 2013 to be lower than in the previous year on the back of weaker demand for polyolefin foam from continental Europe.
The company forecast that full-year sales for 2013 would be 5% below 2012, when the company posted record sales of £47.2m.
According to Zotefoams, the dip in European polyolefin foam demand is largely due to a single client, augmented by downstream destocking.
“This fall is, in the main, related to inventory adjustments at a single large customer who reports that this is due to improved lead times from Zotefoams and continued destocking in their downstream market, affecting their demand levels in the short term,” the company said in a stock market filing.
“As stated on 23 October 2013, with the benefit of our shorter lead times, we expect to progress in this market in 2014,” the company added.
Zotefoams noted strong growth in its high-performance products division, driven by strong growth in its extrusion technology licensing business, but predicted that 2013 results would be broadly in line with management expectations.
The euro-denominated price of low-density polyethylene (LDPE), the company’s key raw material, remained at similar average prices in the fourth quarter of the year to the first nine months of 2013, Zotefoams added.
The company is to announce its full-year results on 18 March.
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