Alent posts fall in sales in first quarter

Alent, supplier of specialty chemicals and engineered materials, reported a 5.8 per cent fall in net sales value (NSV) in the first quarter.

Alent, supplier of specialty chemicals and engineered materials, reported a 5.8 per cent fall in net sales value (NSV) in the first quarter.

NSV came to £101.8m, down from £108.1m a year earlier, reflecting lower smartphone, personal computer and semiconductor wafer start volumes.

However, Alent said it was trading in line with expectations and there was no change to its outlook for the remainder of the year.

During the first quarter, the company experienced increased demand for its performance coatings products in the automotive industry in Asia and the Americas which was offset by weakness in European automotive production.

Alent said the electronics end-markets seemed to be returning to a normal seasonal cycle with a relatively slow first quarter following the traditional fourth quarter build-up.

The firm expects to see customers increase wafer starts which will bode well for modest recovery in printed circuit board fabrication and printed circuit board assembly in subsequent quarters.

Forecasts for global electronic equipment revenue growth have moderated since the start of the year but expectations remain for positive year-on-year growth.

In the assembly materials business segment, the firm experienced an experienced first quarter decline in product demand in the smartphone and personal computer end-markets, with customers preparing for new product launches in the upcoming months.

The surface chemistries segment saw further demand for printed circuit board fabrication chemistries. The business is in the early stages of the ramp in products feeding the semiconductor fabrication end-markets.

"Our financial position remains strong," the group said.

"Working capital trends in the first four months of 2013 have reflected normal seasonality with a build-up of working capital expected in the first half of the year and a corresponding reduction in the second half."

RD

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Nuclear power might never be popular – but now looks a good time to invest
Commodities

Nuclear power might never be popular – but now looks a good time to invest

Nuclear power gets a very bad press, but it is the ultimate renewable energy source. Interest in it is perking up again, says John Stepek. Which means…
9 Apr 2021
How to find companies that can thrive in the post-Covid world
Advertisement Feature

How to find companies that can thrive in the post-Covid world

Many sectors of the global economy will return to something resembling pre-pandemic status, but others will take far longer to recover.
8 Apr 2021