Iluka Resources Limited (ASX:ILU) has cut its sales forecasts for the full 2012 financial year citing a deteriorating economic outlook and ongoing talks with customers in relation to their volume requirements.
The mineral sands producer says a marked deterioration in major regional economies and a more pessimistic outlook has had a flow on impact on the confidence levels of its customers and future business performance expectations.
Iluka says its revised sales volume forecasts reflect this deterioration and the company now expects to sell between 510,000 and 720,000 tonnes of zircon, rutile and synthetic rutile this year down from 1.04 million tonnes last year.
However Iluka says unlike 2009, positive margins on volumes sold, discretionary capital expenditure programs and a strong balance sheet give the company flexibility to deliver value in a period of global turmoil.
Iluka Resources posted a net profit of $542 million in the 2011 financial year.
