Sterling’s strength hampers chemical manufacturer Croda
CHEMICAL manufacturer Croda became the latest victim of sterling’s strength after the company yesterday blamed declining profits last year on the currency.
The company struggled during 2014 as fragile consumer confidence and significant exchange rate volatility compounded a general slowdown in all its main markets, especially in Europe, a situation it expects to continue into this year.
The company’s industrial chemicals sector recorded the biggest decline in revenues of three per cent after it experienced lower sales due to weak commodity prices.
Croda claimed the strength of sterling reduced revenues by 5.7 per cent and adjusted operating profit by 4.5 per cent.
Overall revenue declined by 2.8 per cent to £1.04bn while the company reported a decline in pre-tax profits of 6.4 per cent to £235.4m.