Victrex Upgrades Full-Year Profit Outlook Amid Strong Demand
British specialty chemicals firm Victrex reported stronger-than-expected performance, leading to an upgraded full-year profit outlook. The company now anticipates underlying pre-tax profits of £45 million to £47 million for the year ending September 30, up from its previous forecast range of £42 million to £44 million. This improvement is attributed to stronger demand in key markets such as aerospace and electronics, alongside cost-cutting measures including a 10% workforce reduction. Victrex's shares surged around 15%, reaching near £10 and briefly touching a new 52-week high above £10.18. The company reported an 18% year-on-year revenue increase in the third quarter, with sales volumes up by 17%. For the first nine months of the financial year, overall revenue rose by 7%, driven primarily by increased demand rather than higher pricing. The firm also divested its US-based Kleiss Gears business and will record an exceptional loss on this disposal. Victrex's high-performance polymers are used in critical applications such as aircraft components and semiconductor manufacturing equipment due to their ability to withstand extreme conditions.
Tickers: $NVDA
Topics: demand recovery earnings upgrade profit guidance Victrex