Shares in company, which has been witnessing lower demand from Europe since the last two years, fell nearly 12 percent in morning trade on the London Stock Exchange.

The Harlow, England-based company now expects pretax profit for the year to be below its consensus of 87.8 million pounds ($141.5 million) and said it was seeing more slowdown in the construction-related industry.

Europe and North America account for nearly two thirds of Synthomer's total revenue, supplying to construction and coating, paper and board along with carpet and foam markets.

"Paper and to a lesser degree carpets have their own dynamics in Europe, but it is particularly construction-related industry where we are seeing a slowdown," Chief Financial Officer David Blackwood said in an conference call on Tuesday.

Synthomer, formerly known as Yule Catto & Co, said if performance in Europe continued to be lower in the fourth quarter, pretax profit consensus compiled by the company would be further lowered within a range of 81.3 million pounds to 90.3 million pounds.

"Our main concern is that with these relatively weak demand levels, we could see customers closing early for the year end," Blackwood cautioned, citing destocking as another area of concern for the year-end.

Goldman Sachs cut its price target on Synthomer shares to 250 pence from 260 pence, while Barclays reduced its target to 243 pence from 266 pence.

The analysts cited weakness in Europe and pricing pressure in nitrile, a speciality chemical used in the manufacturing of latex — a very fine quality of rubber.

The company, however, said it remained positive about continuing demand growth in the nitrile latex market.

Synthomer, which supplies speciality emulsion polymers used in construction, textiles, paper and latex gloves, reported a 3 percent fall in third-quarter volumes in its European and North American businesses.

However, CFO Blackwood said the drop in volumes was not the level at which the company would get seriously concerned.

Synthomer shares were down 6.9 percent at 198.2 pence at 1033 GMT, making them top percentage losers on the FTSE-250 <.FTMC> index.

($1 = 0.6204 British pound)

(Reporting by Aashika Jain in Bangalore; Editing by Gopakumar Warrier)

By Aashika Jain