Price dip behind EVC loss
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.EVC International, the biggest maker of PVC in Europe, has crashed into the red and warned its problems are far from over. The company, which is part-owned by ICI and Enichem of Italy, floated on the Amsterdam stock exchange in 1994. It said yesterday that a slump in prices for plastics was principally behind a 7.8m guilders (pounds 3m) first-half loss compared with a 152.7m guilders profit in the same period last year.
Profit margins on PVC were the lowest for a decade, caused by higher prices for the raw material ethylene and lower selling prices. Competition from Eastern European rivals flooding western Europe with cheap PVC had also hurt EVC's market share in some countries, Ettore dell'Isola, chairman, said.
"We were confronted with cheap imports from countries such as Romania which offer low quality products. It was our decision not to compete on price and we therefore lost market share in certain countries," he added.
EVC's overall market share, however, remained stable due to gains made in Germany, Mr dell'Isola said.
The second half of the year is, however, traditionally slow and there are no signs of an easing in raw material prices. The company has also suffered production problems due to the severe winter and maintenance shut-downs.
The news unsettled EVC's shares, which fell 10 per cent immediately after the results were announced to 46.5 guilders before regaining some ground to close 3 per cent down on the day - helped by a 43 per cent boost in the interim dividend to 1 guilder a share.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments