Synthomer shares slide after profit warning
Chemicals company Synthomer led the London Stock Exchange’s fallers this morning after a profit warnings pushed down shares.
The Polymer manufacturer said today that its annual underlying profits before tax would be lower than market expectations if the current macroeconomic troubles carry on over the next three months.
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Underlying profit before tax for full-year 2019 could be approximately 10 per cent below 2018 and its current estimate of market expectations of £135.3m, the board has forecasted.
Synthomer’s share price, which has plunged more than 26 per cent in the last 12 months, has fallen 10 per cent today to 276p.
“The growing weakness in the global economy has created a more challenging backdrop for the chemical industry,” the firm said in a statement.
It added: “Depressed European industrial activity combined with increased political and economic uncertainties have resulted in an overall slower trading environment throughout quarter three.”
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The Essex-based group now expects volumes of Styrene Butadiene Rubber, which is used for making car tyres, to be 10 per cent behind last year’s levels.