News

Pittards expects 4-month profit

02 May 2007 14:25:00

Leather manufacturer Pittards expects a small operating profit for the first four months of the year, but fears that dollar weakness may result in a full year loss.

In finals released in March, the firm said the sliding value of the US dollar was a threat to near-term profitability.

The group confirmed today that this threat would lead to a reduction in second half profitability that may be significant enough to bring about a loss for the year.

This problem is counter-balanced by the closure of the Leeds plant and move to Yeovil and Taiwan.

"Without closing our Leeds factory and transferring products to lower manufacturing cost areas, we would not have been able to withstand the current dollar weakness," said chairman Stephen Boyd.

Elsewhere, the group reported that early response to the new 'Supalite' product for aircraft seating, Pittards first foray into the premier upholstery sector, has been excellent.

Also, its Ethiopian tannery is improving operations, and the firm intends to further its processing activity in the region.

Boyd was more upbeat about the situation going forward. "While the short term trading position will be challenging, with the revised structure and improvements we have set in train, the outlook for 2008 looks much brighter," he said.

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