API hit by exeptional charge and disruption

5th Oct 2011 10:37

Packaging and holograms supplier API Group will record a one-off exceptional charge as a result of flood damage at one of the group's facilities in the US.In addition, API's foil manufacturing site in Rahway, New Jersey, suffered disruption during August as a result of Hurricane Irene. While production was brought back on line within 48 hours and local management ensured minimum disruption to customer supplies, losses associated with damage to property and inventory, beyond what is covered by insurance policies, are estimated at up to £700k, the firm said. The group was keen to emphasise that aside from these incidences, the company traded in line with expectations for the six months to the end of September. "On trading, all of the group's businesses have maintained or improved their operating performance compared to the second half of last financial year," the firm said. "Laminates has continued to enjoy strong volumes, at levels similar to the last financial year, and is on track in respect of the major new supply agreement scheduled to come on stream in April 2012. Steady progress has been made in the Foils businesses, with raw material costs stabilising after the steep increases experienced during 2010/11, and Holographics has benefited from increased demand for security applications," it added. The share price fell 9.88% to 38.75p by 16:03.NR