LONDON (dpa-AFX) - Yule Catto & Co plc (YULC.L) stated that profitability has remained very much in line with the Board's expectations at the time of the third quarter interim management statement.
In a trading update, the company said it has seen further reductions in demand in the fourth quarter, along with most of the chemical sector. Following the modest volume reductions reported for the third quarter, percentage volume declines in the fourth quarter have been in the mid teens. These volume declines have been largely offset by continued margin management.
Synergy delivery from the acquisition of PolymerLatex continues to progress well and to plan.
Yule Catto exited the year with an annualised run rate of 15 million pounds, and remains on track to deliver the planned annual synergies of at least 20 million pounds in the second 12 months post acquisition. The Board expects the impact of these synergies to add some 14 million pounds of profit in 2012 compared to 2011.
Looking ahead, the Board expects full year underlying pre-tax profit to be in line with current market expectations.
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