(Adds analyst comment, share movement)
April 8 British specialty plastics maker Victrex
Plc warned that currency exchange rate movements would
hurt its results in the second half of the year ending
Victrex, which generates about 97 percent of its revenue
outside the UK, also said the adverse impact would continue into
the next financial year.
The company, whose PEEK polymer is used in aircraft
components, car parts, surgical implants and engineering
equipment for oil and gas companies, said sales volumes for the
first half ended March 31 rose 14 percent to 1584 tonnes.
"We remain very mindful of a much tougher year-on-year
comparative for the second half, and of currency headwinds," the
company said on Tuesday.
Victrex said although growth in the first half was strong it
saw a less favourable sales mix.
Revenue from the company's Invibio Biomaterial Solutions
business - which provides PEEK-based polymers to manufacture
long-term implantable medical devices - increased about 12
percent to 26.9 million pounds ($44.68 million), helped by a
recovery in the spine market.
"A robust volume figure for the second quarter would appear
to confirm that growth is returning. However, negative exchange
rates and a less favourable mix suggest that not all of this
will flow through to the bottom line," JPMorgan Cazenove analyst
Martin Evans wrote in a note to clients.
Victrex's shares were up 1.24 percent at 2020 pence at 0804
GMT on the London Stock Exchange on Tuesday.
($1 = 0.6020 British Pounds)
(Reporting by Karen Rebelo in Bangalore; Editing by Joyjeet