Weak global demand is damping Kraton's business.
"Despite opening our third quarter in July with stable market indications, fundamentals including demand in China and broader Asia, and more recently in Europe and North America, weakened notably" as the period went on, CEO Kevin Fogarty said in a statement. The change hurt results for its polymer and chemical segments, he said.
Declining demand in China and the rest of Asia stems largely from U.S.-China trade tension and tariffs. In Europe, which is suffering a sharp economic slowdown, weak demand for automotive and compounding applications dented sales, Kraton said.
The shares closed down 32% at $20.33. The day's low was $20.09. The 52-week low, set last December, was $19.13.
Kraton expects third-quarter net income to total about $21 million, half the $42.3 million of the year-earlier quarter and trailing the FactSet consensus of $35.1 million.
The company doesn't expect market conditions to improve for the rest of the year. So it sees full-year 2019 adjusted EBITDA coming in 10% to 15% below the lower end of its previous guidance range of $370 million to $390 million.
Kraton plans to report its third-quarter results after the market close Oct. 23.