Business
Q1 Trading and COVID-19 Update
Q1 Trading and COVID-19 Update.
About this update from Synthomer Plc
[{"type":"text","content":"\n \n \n RNS Number : 2338L\n Synthomer PLC\n 29 April 2020\n \n \n \n 29th April 2020\n \n Synthomer plc\n Q1 Trading and COVID-19 Update\n Synthomer plc ('Synthomer' or 'the Group') today issues a trading update for the quarter ended 31st March 2020.\n Q1 Trading\n \n As announced previously, the Group has experienced a solid start to the year with EBITDA approximately 5% ahead of the comparative Q1 period for the heritage business, and in line with expectations set out at the time of Synthomer's full year results announcement. \n \n Performance Elastomers\n Our Nitrile Butadiene Latex ('Nitrile') business continued to benefit from the additional 90kt of capacity introduced in Q4 2018 at our Pasir Gudang site. We saw higher volumes due to COVID-19, although unit margins were marginally lower relative to a strong comparative period in 2019. Styrene Butadiene Rubber ('SBR') market conditions stabilised with volumes in line and unit margins ahead of prior year. The strategic review of our European SBR network is ongoing and a further update will be provided in due course. \n Functional Solutions\n Whilst reported volumes were lower than the comparative period this was compensated for by stronger unit margins as a result of improved mix and softer raw material markets. Progress has been supported by the expansion of our Worms, Germany and Roebuck, USA dispersions facilities last year which introduced low cost capacity to drive organic growth in differentiated applications.\n Industrial Specialities\n Performance has continued in line with expectations. Excluding the impact of our acrylate monomer business, which largely supplies internal demand, all businesses made progress with volumes in line and margins ahead of the comparative period in 2019.\n COVID-19 Update\n \n The Group continues to operate 37 of its 38 global manufacturing sites, with speciality chemicals designated as key industrial assets in the geographies in which Synthomer operates. To date, the Group has experienced no significant issues with regards to raw material supply, the distribution of finished goods or the availability of operating personnel.\n \n \n Notwithstanding Synthomer's broad geographic and end market diversity, Q2 sales into industrial markets including Automotive and the Oil & Gas sector are currently being impacted. However...