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10 Nov 2011 07:00
10 November 2011
Yule Catto & Co plc (the "Group")
Interim Management Statement
Yule Catto & Co plc (the "Group"), the international producer of speciality chemicals, today issues its interim management statement for the period 1 July to 9 November 2011.
The Group has performed well, in what has been a period of considerable economic uncertainty, and earnings for the third quarter were slightly ahead of the Board's expectations as at the date of the interim results.
The Polymers business saw generally softer demand across all regions compared to the first half of the year, as the customer destocking which started in July and August at the time of the Group's interim statement continued through the period resulting in a modest reduction in volumes. Monomer prices fell back through the period following the steep increases experienced through 2010 and the first half of 2011, with substantial falls in September and October. The benefit of weakening input prices and product price management ensured that third quarter pro-forma profitability continued to be comfortably ahead of prior year.
The delivery of synergies from the PolymerLatex acquisition continues to progress well and to plan. After six months of ownership, synergies had reached an annualised run rate of £8M at the end of the third quarter. The Board remains highly confident of achieving the planned annual synergies from the acquisition of at least £20M in the second 12 months post acquisition.
Pharma division profits year to date were similar to prior year.
Net debt reduced to £226M at the end of September from £240M at the end of June.
On 17 October, the Group announced the acquisition of Quality Polymer, a Malaysian aqueous polymer producer, expanding the Group's South East Asian production and sales of acrylic and vinylic polymer dispersions and adding a facility located close to Yule Catto's existing plant in Pasir Gudang.
The Board believes the current softer demand is attributable to destocking, along with some end market weakness. Based on current performance, the Board expects the Group will deliver full year earnings at least in line with current market expectations.
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ENQUIRIES:
Yule Catto & Co plc | Tel: 01279 442791 |
Adrian Whitfield, Chief Executive | |
David Blackwood, Group Finance Director | |
MHP Communications | Tel: 020 3128 8100 |
Andrew Jaques | |
John Olsen | |
Ian Payne |
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