Zotefoams ahead of forecasts

23rd Oct 2009 07:56

Foam maker Zotefoams expects underlying profits to beat market foreasts for this year after sales picked up in the second half. 'Profit for the quarter benefited from higher levels of activity, favourable exchange rates and the cost reductions implemented earlier in the year,' it said, adding that key raw material costs still remain below the very high levels seen at this time last year.Overall, seasonally adjusted sales in the quarter to September in the polyolefin segment improved in all major geographical markets compared with the first six months of this year, although recovery in the UK lags the stronger activity in other markets. High performance foam sales were significantly ahead of last year, it added.The group cautioned that visbility into 2010 is low but the current order book for October is strong and it expects profit before tax and exceptional items for the year ended 31 December 2009 to exceed market expectations.