August 23, 2017 / 7:01 AM / a year ago

Belgian chemical firm Tessenderlo cuts profit outlook on dollar volatility

Aug 23 (Reuters) - Belgian chemical group Tessenderlo cut its 2017 profit outlook on Wednesday, citing a challenging market and currency volatility in the U.S. dollar as it generates a significant share of its profit in the United States.

Tessenderlo now expects recurring earnings before interest taxes, depreciation and amortization (REBITDA) growth to be flat, compared with the previous year’s 198.0 million euros ($232.75 million). It had expected modest growth.

The average value of the dollar fell to a 13-month low against a basket of six major currencies last month.

The group’s recurring core profit for the second quarter came in at 65.7 million euros, a 9.1 percent fall compared to the same period last year when it benefited from inventory write-offs.

During the first half, recurring core profit at its industrial solutions business fell 16.2 percent, hurt by higher raw material prices.

$1 = 0.8507 euros Reporting by Piotr Lipinski; Editing by Edmund Blair

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