Devro forecasts import costs to make full-year operating profit miss forecast
October 23, 2012, 12:01 am TWN
Reuters--British sausage-skin maker Devro PLC said its full-year operating profit was likely to miss its forecast as higher input costs and a weak Czech crown offset strong demand for its products.
Devro, which makes casings for everything from German bratwurst to British breakfast bangers, said sales volumes have continued to rise across several markets, particularly Japan, Europe and the Americas, from July 1.
But the company said its full-year profit would be hurt by a combination of a weakening Czech crown against the pound, increases in raw material costs and delays in plant commissioning.
Devro, which has manufacturing sites in Scotland, the Czech Republic, the United States and Australia, said it would invest about 35 million pounds (US$56.08 million) this year to increase capacity and productivity in 2013 and 2014.
Devro shares, which have risen 30 percent this year, closed at 336 pence on Friday on the London Stock Exchange.