26 August 2010 10:28 [Source: ICIS news]
LONDON (ICIS)--Yule Catto & Co's first-half 2010 underlying net profit grew by 25.8% to ?19.2m (┬23.4m, $29.6m) compared with the same period in 2009, as the group's polymer and impact chemicals divisions all recorded a pick-up in sales growth, the UK specialty chemicals company said on Thursday.
Total sales for the six months ended 30 June rose by 23.6% year on year to ?326.6m, it added.
⌠The group had an excellent first half, with strong growth in earnings driven by profits in our core polymers division, building further on the substantial improvements we delivered in 2009, said Adrian Whitfield, Yule Catto's chief executive.
⌠The group exited the first half with firm demand across nearly all areas in the polymer business and a strong order book in pharma and impact. The board anticipates performance in the second half should continue at a broadly similar level to the first half, albeit with the usual seasonal trend, Whitfield added.
Yule Catto's polymer chemicals business saw sales grow in the first half by 28.4% year on year to ?278.8m, while operating profit for the sector rose by 19.2% to ?29.2m.
The group's pharma sector reported a 5.3% year on year fall in sales to ?33.8m, while operating profit fell by 18.9% to ?3.0m.
Yule Catto's impact chemicals business, William Blythe, recorded a 22.6% rise in sales to ?14.1m compared with the same period in 2009, while its operating profit rose by 77.8% to ?1.6m.
Looking at the economy, Yule Catto said it remained cautious due to mixed global growth patterns, with robust growth in Asia offset by weaker growth in Europe and North America.
⌠However, Yule Catto's robust financial position, strong portfolio of market leading products, and high percentage of sales into Asia and other developing economies, underpin the board's confidence in the group's prospects for the medium term, Whitfield said.
($1 = ┬0.79, ?1 = ┬0.82)