Recticel (Brussels / Belgium; www.recticel.com) expects its 2014 operating profit (REBITDA) to fall by around 12% year-on-year due to a number of factors including rising polyol prices. While full year sales are expected to increase slightly compared to 2013, the company said in a trading update that, in a deteriorating market environment, sales in the final quarter are now expected to fall slightly year-on-year.

In an earlier, third quarter trading update, the company had expressed a concern over the risk of rising polyol prices. In this most recent update it says that this fear had materialised due to the shortage of propylene oxide in Europe, following two major incidents at suppliers’ plants. In addition, operational issues in its flexible foams division had hit the fourth quarter, it added.