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UPDATE 1-Yule Catto profit doubles with PolymerLatex deal
March 14, 2012 / 8:23 AM / 6 years ago

UPDATE 1-Yule Catto profit doubles with PolymerLatex deal

* 2011 underlying pretax profit 84.8 mln stg

* 2011 sales rose 92 pct to 1.12 bln stg

March 14 (Reuters) - British chemicals maker Yule Catto & Co Plc’s acquisition of German peer PolymerLatex helped double 2011 profit, but the group warned of several years of low growth in the western economies that contribute to a majority of its revenue.

The PolymerLatex acquisition, announced in late 2010, resulted in a doubling in the size of the group’s business, the company said in a statement.

With western economies seeing low growth, Yule Catto said it expected global growth to be driven by emerging markets.

The company, whose chemicals are used by the adhesive, textile, paper and pharmaceutical businesses, reported 2011 underlying pretax profit of 84.8 million pounds, compared with 42.6 million pounds in 2010.

Total sales rose 92 percent to 1.12 billion pounds.

In January, the company had said it had experienced demand reductions in the fourth quarter, but that the declines in volume were largely offset by continued margin management.

Yule Catto’s shares, which have gained 18 percent in value since January, when the company said it was expecting 2011 profit in line with expectations, were up 9 percent to 228 pence at 0815 GMT on the London Stock Exchange on Wednesday.

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