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UPDATE 1-Essentra expects second-half margin decline at its biggest business
October 23, 2017 / 7:33 AM / a month ago

UPDATE 1-Essentra expects second-half margin decline at its biggest business

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Oct 23 (Reuters) - Essentra expects operating margins at its health and personal care packaging business to decline slightly in the second half of the year after two of its Puerto Rico sites were hit by hurricane Maria last month.

The speciality plastics and packaging company said on Monday that partial operations had resumed at the unit’s affected sites on Oct. 2.

The group, which makes products ranging from cigarette filters to adhesives, has been hit by continuing operational issues and significant decline at the health and personal care division since it was acquired from Clondalkin Group in 2015.

The business accounted for 40 percent of group profit last year.

Essentra estimated the profit impact from hurricane Maria at between 1.2 million pounds ($1.6 million) to 1.5 million pounds before recovery from insurance. ($1 = 0.7575 pounds) (Reporting By Justin George Varghese and Radhika Rukmangadhan in Bengaluru; Editing by David Goodman)

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