Synthomer warns profit may fall
CHEMICAL maker Synthomer saw its share price tumble by almost six per cent yesterday, after issuing a £6.5m profit warning.
The company stated that, at current run rates and “given the current demand environment in Europe”, the board “now expects full-year profit-before-tax to be slightly below current consensus”, at £87.8m. According to the firm, profit could now fall to around £81.3m.
Synthomer stated: “We are cautious about performance in Europe given recent economic developments, and should this impact demand further than currently anticipated in the fourth quarter, then profit-before-tax is likely to be around the lower end of the current consensus range.”
In its second quarter results, Synthomer reported firmer demand in its European and North America segment, particularly in construction. However, business volumes fell by three per cent during the last quarter.