Yule Catto comes in ahead of expectations

The speciality chemical producer Yule Catto has seen its share price edge higher on Thursday on news its third quarter earnings were ahead of management expectations.

The group makes clear, however, that it is seeing weakening demand in its polymers business due to customer de-stocking. Brighter news though is that lower input prices for monomer kept profitability levels ahead of 2010.

Yule says it has already squeezed £8m in synergies out of its acquisition of the German firm PolymerLatex, with another £12m expected by 2013.

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The board says it believes full year earnings will be "at least" in line with current market expectations.

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