Synthomer cautions over 'challenging' Europe in second half

7th Nov 2013 07:56

- Performance since mid-year point broadly unchanged- Europe continues to prove challengingChemicals company Synthomer on Thursday reported that it had performed broadly in line with its expectations since August but warned second-half operating profit from Europe would be lower than that seen in the first. The group said this was a reflection of normal seasonal factors and the ongoing challenging nature of the region's trading conditions. Europe and North America (ENA) operating profit between the start of July and early November was below the same period last year, hit by persistently soft margins as seen in the first half and despite improved volumes. "In a difficult demand environment, a number of pricing actions have been taken," it revealed. In Asia and Rest of the World (ROW), trading remained strong, with a continuation of the "solid" demand for nitrile during the period, reflecting the ongoing benefits of new product launches at the beginning of the year.Adrian Whitfield, Chief Executive Officer, said: "Whilst challenging market conditions in Europe have persisted, our business has held up well and strong cash generation is enabling us to maintain investment in emerging market growth. The nitrile business in Asia has continued its solid performance and we are encouraged by the demand growth in the region."The group's cash position continued to be robust, with net debt slightly reduced over the period. "As we approach the end of the year, we expect the seasonal working capital profile of the business to ease, further improving our net debt position," Synthomer added. NR