Croda International, the chemicals maker which makes ingredients that go into everything from face creams to insecticides, warned its full-year profits will be lower this year due to the strong pound.
The East Yorkshire-based business, which counts Procter & Gamble, Unilever and L'Oreal among its key customers, said if the pound remained at current levels currency effects would have cut 2013 pre-tax profits of £251.4 million by about £19 million.
Last week the pound climbed above 1.70, a near six-year high against the dollar, which led the CBI business lobby group to warn that the rise in sterling could hit export orders.
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Croda, which employs 3,400 staff in 34 countries and was formed in 1925, accounts for around 59% of its sales from the Americas and the Asia Pacific region.
As well as the sterling impact, the business said it suffered a less favourable sales mix at its consumer care unit, which produces chemicals for skin creams, herbicides and animal care.
Croda also said sales at its industrial business - chemicals that go into paper and rubber production - were lower. The firm added that market conditions, especially in Europe remain subdued.