November 21, 2016 / 7:56 AM / 3 years ago

Essentra cuts full-year adjusted operating profit estimate again

Nov 21 (Reuters) - Essentra Plc, a supplier of speciality plastic and packaging components, cut its full-year adjusted operating profit estimate for a second time this year, citing challenging market conditions for filter products in China.

* The company, whose filter products are used in tobacco, health and personal care and consumer goods, said it expected adjusted operating profit to be between 137 million pounds ($169.32 million) and 142 million pounds for the year ending on Dec. 31, 2016.

* It had previously expected full-year adjusted operating profit to come in between 155 million pounds and 165 million pounds, lower than 171.5 million pounds reported last year.

* “Taken in conjunction with the continuing prolonged underlying softness in the Chinese market, these factors have resulted in lower-than-expected volume across the site footprint, which has a consequent impact on both revenue and operating profit,” the company said in a statement.

* The filters business accounted for about 27 percent of Essentra’s 2015 revenue.

* The company, whose products range from cigarette filters to adhesives, said integrated sites in health and personal care packaging in both the United States and the UK have not seen required rate of month-on-month uplift in both revenue and operating profit which was anticipated. ($1 = 0.8091 pounds) (Reporting by Rahul B in Bengaluru)

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