LONDON—Synthomer P.L.C. is reducing its capital expenditures and withdrawing its full-year financial guidance due to uncertainties caused by the COVID-19 pandemic.
The London group expects to cut 2020 capital expenditures to $62.5 million from the $98 million originally anticipated. It also has frozen senior management salaries at 2019 level, Synthomer said in a April 29 trading update.
Synthomer also withdrew its financial outlook for 2020, saying it would update the market "when there is better visibility."
The group said it continues to operate 37 of its 38 global manufacturing sites, with specialty chemicals designated as key industrial assets in the geographies in which it operates. While raw material supply and the distribution of finished goods have experienced "no significant issues," Synthomer said second quarter sales into industrial markets such as the automotive and oil & gas are being impacted.
On a positive note, demand for the group's nitrile butadiene latex continues to be strong particularly as a result of the COVID-19 pandemic.