Essentra Plc has warned that it expects its 2016 full-year profit to be down on that of 2015, citing challenging market conditions in filter products and delays in some large projects, according to a story by Noor Zainab Hussain and Esha Vaish for Reuters.
The company said it expected adjusted operating profit to be between £155 million and £165 million for the year ended December 31, compared with £171.5 million last year.
However, revenue this year is expected to be broadly unchanged from the £1.09 billion it reported last year
On a call for investors and analysts, chief executive Colin Day said, in part, that a slowdown in China and an increase in tax on tobacco products in India had impacted the filters business, which accounted for about 27 percent of Essentra’s 2015 revenue.
Over the past two years, Essentra has enjoyed growing demand for its filter products in Asia, the Middle East and Russia, and has been making a push into the electronic cigarette market.
It derives roughly half its sales from Europe, about a third from the Americas and the rest from Asia.
The full story is at: http://www.reuters.com/article/us-essentra-outlook-idUSKCN0YV0NA