LONDON (Alliance News) - Niche plastic products company Plastics Capital PLC on Monday said it is trading broadly in line with market expectations, with good trading in its Films division, improved conditions in its Industrial business but sluggishness in creasing matrix sales.
Plastics Capital said its Films division has seen robust trading as the group moves into the third quarter of its financial year to the end of March. Margins in the division have improved, following a temporary squeeze in the first quarter, and sales prices have improved, while input prices have started to weaken. The company has expanded its Films capacity and expects further capacity to come on line by the end of the financial year.
The group's Industrial business has seen an improvement in trading, with better new business sales for its bearings and mandrels compensating for some subdued global demand. The group expects a seasonal upswing in the second half from its bearings business, driven by the swimming pool cleaner market, and it said it expects to secure a major contract in the second half.
Mandrels, a type of industrial clamp, have performed well in Europe and the US and the group is hoping demand will improve in the second half.
Sales of creasing matrix, used to crimp rubber, have been slower year-on-year, the company said, due to declining emerging market demand, and the group said it has made good progress in its new China operation.
Shares in Plastics were down 1.8% to 107.00 pence on Monday morning.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
