* Third-quarter profit up 5.4 pct to 58.6 mln stg
* Third-quarter underlying sales up marginally
* Sees fourth-quarter profit likely to be similar to
* Shares fall as much as 9 pct
Oct 31 British specialty chemical maker Croda
ground out a 0.8 percent increase in underlying sales
in the third quarter as it struggled with lacklustre demand and
Croda's shares were down about 8 percent at 2433 pence at
0931 GMT on the London Stock Exchange, making the stock one of
the biggest percentage losers among the FTSE 100 companies.
The company, which makes chemicals used in personal care,
crop care and home care products, said it expected
fourth-quarter profit to be similar to that of the third
Croda said that a significant devaluation of the Japanese
yen and the Indian rupee had reduced the benefit of currency
translation compared to the first half. Asia-Pacific accounts
for about a quarter of the company's sales.
Steep falls in emerging market currencies are hurting the
company, even as sales in Europe begin to recover slowly. Croda
counts Unilever, L'Oreal and Procter & Gamble
among its customers.
Pre-tax profit increased 5.4 percent to 58.6 million pounds
($94.20 million) during the period.
The company said sales at its consumer care business
increased 3.2 percent to 145.4 million pounds.
Consumer care, which consists of the personal care, health
care and crop care businesses, accounts for over half of Croda's
"Despite stable margins and year-on-year growth in 'Consumer
Care', with negative currencies likely to impact Q4 and market
conditions 'subdued' the earnings outlook remains uncertain,"
said JP Morgan Cazenove analyst Martin Evans.