Sausage skin maker Devro hit as costs leap

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The Independent Online

The sausage-skin maker Devro has warned that it will miss profit expectations this year because of higher material costs and currency movements.

Devro said sales have been growing since July, particularly in Japan, Europe and the Americas. A company spokesman said: "Overall market demand remains strong both in established and emerging markets."

But Devro has seen raw materials prices continue to rise "and this trend is expected into next year".

Adverse currency movements and new plants taking longer to build than expected were also blamed on 2012 profit being "slightly below our original expectations but ahead of last year".

The shares fell 11.9p to 324.1p.