Croda International issues profit warning

24th Jun 2014 07:04

- Issues full-year profit warning- Strong pound weighs on profit- Medium term targets remain unchangedSpecialist chemicals company Croda International said it expects second quarter pre-tax profits to be around 8% below its first quarter performance and full-year profit to be lower than the previous year as the strong pound continues to weigh on earnings.The FTSE-250 beauty and homecare firm said approximately £1.5m of the difference between the two quarters is due to the increase in the strength of sterling. It added that for the full-year, if sterling remains at current levels, the currency translation and transaction effects would reduce the £251.4m pre-tax profit reported in 2013 by approximately £19m. This includes around £13m currency translation plus an estimated £6m currency transaction, arising mainly on Croda's US dollar denominated exports from Europe, it explained. "Whilst we still expect to achieve underlying profit progress in 2014, pre-tax profits are now expected to come in below those attained in 2013," Croda warned in a company statement.Croda said it remains confident in the long-term strategy of the group and its medium term targets remain unchanged.CJ