Ups and downs at Low & Bonar

Shares in Low & Bonar fell back after the maker of industrial fabrics issued a mixed trading update.The company expects profits for the full year to be in line with expectations."We are pleased to be able to report that the overall demand for our key products continues to be robust, and we expect that volumes will be ahead of the second half of last year, despite strong comparatives in that period," the company said.Civil engineering and flooring markets have continued to perform well, but demand in building and industrial markets remains subdued, the company said. Low & Bonar said that funding shortages for sports fields in Europe and the US have affected sales of artificial grass yarn, which account for 8% of overall sales.Raw polymer prices have stabilised at a high level, which will result in stronger operating margins in the second half, the company said. "However, increasing margins in some of the more price sensitive segments of our Technical Coated Fabrics division has been more challenging than anticipated," the company said."We are confident of delivering another year of substantial progress," chief executive Steve Good said. "While we remain alert to the uncertain macroeconomic indicators, the group is in good financial shape and well positioned to adapt to opportunities and challenges ahead."