Kemira on Friday reported a drop in second-quarter profit and revenue, confirming the market weakness it flagged in a profit warning last week that followed a stock sale by a key executive.
The Finnish chemicals company said revenue for the quarter fell 5% to 693.4 million euros, while operative earnings before interest, taxes, depreciation, and amortization decreased 6% to 131.8 million euros.
Kemira attributed the decline to lower sales volumes and prices, a weaker U.S. dollar, and soft demand in its Packaging & Hygiene Solutions division.
The head of that division sold shares about a month before the company's July 10 profit warning, which cited weakness in the packaging and pulp industry.
"Uncertainty in the global economy continued, following the changing tariff landscape and increased geopolitical tensions," President and CEO Antti Salminen said in a statement, adding that the uncertainty has "particularly impacted Packaging & Hygiene Solutions’ demand environment which continues to be weak."
The company said it has launched a profitability improvement initiative for the struggling division, which faced issues particularly in the Asia-Pacific region.
Kemira reiterated its lowered full-year outlook, expecting revenue between 2.7 billion and 2.95 billion euros and operative EBITDA between 510 million and 580 million euros.
The company's board also announced a new share buyback program of up to 100 million euros.
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