LONDON—Synthomer P.L.C. has linked a 46-percent year-on-year drop in first-half earnings (EBITDA), to $212 million (£173.1 million)—on 8.6-percent higher sales of $1.6 billion—to a decline in its Performance Elastomers' nitrile rubber business.
Performance Elastomers revenues dropped 31.8 percent year-on-year to $460.9 million, as volumes fell 21 percent to 374.2 metric kilotons. Earnings (EBITDA) came in 81.3-percent lower at $51.2 million.
Demand for nitrile butadiene rubber related to COVID-19 fell back from an "exceptional" pandemic-related peak of a year ago, the United Kingdom group reported Aug. 2.
"Current destocking has meant that demand has softened substantially, resulting in lower nitrile volumes, revenues and EBITDA the first six months of 2022," said Synthomer.
Margins in the health and protection sector were significantly down, reflecting market conditions driven by destocking of nitrile gloves, the company added; however, it described the decline as "temporary."