July 11, 2014 / 7:05 AM / in 4 years

Chemical maker Synthomer cuts profit outlook on strong pound

July 11 (Reuters) - Chemical maker Synthomer Plc said it expected full-year operating profit to be lower by about 5 million pounds ($8.5 million) due to further strengthening of sterling.

Synthomer, which supplies speciality emulsion polymers used in construction, textiles, paper and latex gloves, said it previously expected a 4 million-pound hit to operating profit.

The company, formerly known as Yule Catto & Co, added that operating profit in Asia would be about 4 million pounds lower than a year earlier as strong competition and weak butadiene pricing continued to pressure margins. Butadiene is used in the production of synthetic rubber.

However, Synthomer said that it expected demand for nitrile latex to grow and margins to firm as the second half progresses.

Nitrile is a speciality chemical used in making latex, a very fine quality of rubber. ($1 = 0.5877 British Pounds) (Reporting by Aastha Agnihotri in Bangalore; Editing by Gopakumar Warrier)

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