Volatile trading conditions and additional provisions for bad debt have led Nuplex Industries to cut its earnings forecast.
The resins manufacturer is now expecting earnings of $42.5 million in the half year.
Nuplex says demand from Europe in particular fell substantially during the period, partly due to customers reducing their inventory towards the end of the year.
The company expects that market to improve in the second half, now that inventory levels are in line with demand.
The company says with demand lower than previously anticipated, and the impact of restructuring costs, it expects its second half result to be similar to that of the first half.