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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The board says it believes full year earnings will be "at least" in line with current market expectations.
BS
-
Wall Street enjoys a Trump sugar rush – will it crash?Wall Street investors could be repeating the mistakes they made in Trump's first term, when “Trump trades” enjoyed a short pop and then underperformed
-
Bargain British stocks with long-term potentialThree British stocks with plenty of long-term potential, according to Ian Lance, co-manager of Temple Bar Investment Trust
