Devro profits for 2016 in line with expectations
Casings producer Devro has reported that underlying operating profit for 2016 is predicted to be in line with expectations.
In a trading update, it reported that overall sales volume trends in the second half of the year were broadly similar to those experienced in the first half.
However, an improved performance in the second half of the year in Russia, south-east Asia and, in particular, in Q4 in China, offset lower volumes related to product issues in Latin America and some volume reduction in North America due to customer destocking in the final quarter.
In China, sales volumes in H2 were more than double of those in H1 as capacity from the new factory came on stream.
In its previous trading update, the company expected that sales would be approximately 10% lower than previously anticipated, which will result in an “under-utilisation of available capacity”, leading to underlying operating profit for 2017 to be lower than previous expectations.
Devro’s interim results for the six months ended 30 June 2016 showed that underlying operating profit as £2.4 million ahead of the prior year.
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