Yule Catto talks up profits
1 min read
The speciality chemicals producer Yule Catto said today (24 June) that it was expecting its main polymer chemicals business to generate half year profits that were well ahead of the previous year although its pharmaceutical chemicals division was currently achieving lower margins. Overall, Yule Catto expects underlying pre-tax profit for the first half of 2010 to be substantially ahead of last year.
Polymer Chemicals is the Group's main business, accounting for 88% of operating profit in 2009 with 50% of its revenue in Asia and emerging markets. The business has continued to enjoy good volumes through the second quarter and is expected to produce a first half operating profit for polymers well ahead of the prior year, Yule Catto announced in a trading statement.
Pharma Chemicals had seen good demand during the first half year, but the business mix generated lower margins which will result in the first six months operating profit being below last year's level. The division currently has a very strong order book, and should see an improved product mix in the second half, the company said.
William Blythe, the Group's only remaining Impact Chemicals business, has seen improved volumes, and is trading strongly ahead of the prior year.
