BURLINGTON, ON,
Dec. 14, 2011 /PRNewswire/ -
EcoSynthetix Inc. (TSX: ECO), a renewable chemicals company that
produces a family of commercially proven bio-based products, today
announced that it expects revenue for the fourth quarter ending
December 31, 2011 to be approximately
$3.2 to $3.5 million compared to
$5.9 million during the same quarter
in 2010. The change in revenue is due to significantly reduced
sales to a major customer in Asia
and customers reducing their raw material inventories due to
general market weakness in the paper and paperboard industry.
"As a supplier of engineered biomaterials for
the paper coating process, our sales this quarter are a direct
reflection of the challenges faced by our customers to gauge demand
for their products," said John van
Leeuwen, Chairman and CEO of EcoSynthetix.
Recent announcements by a number of the global
top 20 paper and paperboard companies suggest that economic
uncertainty has resulted in a reduction in raw material
inventories, layoffs and plant closures, with some companies
suggesting they may temporarily shutter some capacity for Q1
2012.
"While this is a challenging period for paper
and paperboard companies, the same industry conditions that have
contributed to our weaker top-line this quarter are those that
should ultimately support demand for our lower-cost products. Our
value proposition remains strong, lower cost bio-based polymers
with less volatile pricing than petroleum-based polymers. We
continue to build on our direct and channel sales capabilities and
our mill trial activity is at record levels because the top players
in this industry know that lasting changes to their cost structures
must be made," van Leeuwen said.
The preliminary revenue expectation in this news
release is an estimate and may change upon completion of the final
analysis of the fourth quarter.
About EcoSynthetix Inc.
(www.ecosynthetix.com)
EcoSynthetix Inc. is a renewable chemicals company specializing in
bio-based products that can be used as inputs in industrial
manufacturing for a wide range of consumer products. The Company's
products offer a reduced carbon footprint and are marketed
primarily on the basis of lower cost, stable pricing and equal or
superior performance. EcoSynthetix's lead product,
ECOSPHERE® BIOLATEX® binders, is used
commercially by a number of the global top 20 manufacturers in the
coated paper and paperboard industry.
Forward Looking Statements
Certain statements in this Press Release constitute "forward
looking" statements that involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance, objectives or achievements of the Company, or industry
results, to be materially different from any future results,
performance, objectives or achievements expressed or implied by
such forward looking statements. These statements reflect our
current views regarding future events and operating performance and
are based on information currently available to us, and speak only
as of the date of this Press Release. These forward looking
statements involve a number of risks, uncertainties and assumptions
and should not be read as guarantees of future performance or
results, and will not necessarily be accurate indications of
whether or not such performance or results will be achieved.
Those assumptions and risks include, but are not limited to,
the fact that our results of operations and business outlook are
subject to significant risk, volatility and uncertainty. Many
factors could cause our actual results, performance or achievements
to be materially different from any future results, performance or
achievements that may be expressed or implied by such forward
looking statements, including the factors identified in the "Risk
Factors" section of the Company's supplemented prospectus dated
July 27, 2011. Should one or more of
these risks or uncertainties materialize, or should assumptions
underlying the forward looking statements prove incorrect, actual
results may vary materially from those described in this Press
Release as intended, planned, anticipated, believed, estimated or
expected. Unless required by applicable securities law, we do not
intend and do not assume any obligation to update these forward
looking statements.
SOURCE EcoSynthetix Inc.