Synthomer maintains FY guidance on strong margins

Chemicals group Synthomer maintained full year guidance as third-quarter volumes in its US and European operations fell but margins improved on increased investment.

The company also announced a restructure, effective 1 January, that would see it create three business units: performance elastomers, functional solutions and specialities.

“The new structure combines sales, marketing, research and production by business group into dedicated global teams whilst retaining very strong regional strength and local focus,” the company said in a trading update.

Synthomer said quarterly volumes in Europe and North America were slightly lower year-on-year, excluding those associated with its recently-acquired Pischelsdorf business.

Unit margins, however, were slightly higher, with all segments apart from paper rising, reflecting further investment and increased efficiencies.

In Asia and the rest of the world, nitrile latex volumes were slightly ahead of a strong comparative period. Unit margins were also higher and in line with the first half of 2018.

“Synthomer's product and geographic diversity means that we are well positioned to withstand the challenging macroeconomic and political environment and, along with the good performance in the first nine months of the year, the board's expectations for full year 2018 remain unchanged,” the company said.