A slowdown in Coats’ (COA) zips business and falling sales to the transportation industry contributed to a flat four months between July and October for the industrial threads manufacturer, which has lowered its full-year expectations for adjusted operating profit.
On a statutory basis, Coats’ overall sales for the period were 1 per cent down on the prior year. This was an improvement on the 3 per cent decline in its first half. Coats’ zips business reported “mid single-digit decline”, which the group attributed to changes to its portfolio. The performance materials division was hampered by slower growth in its personal protection and telecom/energy segments, “principally due to certain de-stocking activities” and the phasing of European customer programmes. Challenging end markets dragged down sales to the transportation industry.
Coats has accordingly lowered its forecast for adjusted operating profit to $196m (£152m)-$201m, lower than house broker Peel Hunt’s previous estimate of $204m.
Peel Hunt forecasts full-year 2019 pre-tax profits and earnings per share of $171.6m and 7¢ respectively, rising to $184.5m and 7.5¢ in 2020.
