LONDON (dpa-AFX) - Devro plc (DVO.L) said the sales momentum improved during the Group's third quarter with 1 percent volume growth in collagen casings. During the period, the company recorded good trading in North America, and also in China. These positive performances were offset by a further deterioration in market conditions in Continental Europe and weaker than expected sales in Japan.
Looking forward, the Group said its expectations for the full year remain broadly unchanged. Devro plc continues to expect a modest acceleration of volume growth in the fourth quarter with full year volume growth expected at approximately 1 percent.
As a result of the Group's review of its global manufacturing footprint, Devro is proposing to close the Bellshill site in Scotland during 2020 with the loss of approximately 90 employees. An exceptional cost of 15 million pounds, or 10 million pounds of cash, will be incurred.
Additionally, the Group is analysing its ongoing supply strategy which is expected to result in non-cash exceptional impairment charges in fiscal 2019, primarily relating to partial write-downs of the China and US plants.
Copyright RTT News/dpa-AFX