British Polythene Industries reports mixed first quarter results

Source: Manufacturing Digital

Date :09/05/2008 15:23:09

British Polythene Industries Plc (BPI), Europe’s largest manufacturer of polythene products, reported that first quarter profit before tax was lower than in the same period last year.

The company said that demand for products in construction and manufacturing was lower in the first quarter but that this was compensated for by increased demand for other products. Sales of silage stretchwrap in particular helped volumes rise by five percent in the first quarter compared to the first quarter of 2007.

Cost increases

BPI continues to be affected by the substantial increases in the costs of energy. Although raw material costs have stopped rising in Western Europe, the company’s UK plants have had to accept increases caused by the weakening of Sterling against the Euro.

The firm has seen the competitiveness of their UK manufacturing operations improve due to currency movement and has recently been successful in regaining work previously lost to European producers.

Cameron McLatchie, Chairman of BPI, said, “We have previously indicated that for many parts of our Group, 2008 was expected to be a challenging year and we currently anticipate that, whilst we will have a steadier performance in the second quarter, the result for the first six months will remain somewhat behind the same period for 2007.”

May 09, 2008