News

Weak dollar pushes Pittards into losses

13 March 2008 11:52:00

Leather producer Pittards blamed the weak dollar as it fell into the red in 2007, adding it is cautious about the global economic outlook.

The company recorded pre-tax losses of £2.2m in 2007, compared with profit of £27.5m the year before (including a gain of £26.9m on the resolution of pension deficit and other exceptionals).

Revenue fell to £28.9m from £39.4m, due mainly to the closure of a factory in Leeds in 2006 as it changed the types of hides it processes.

"2007 has turned out to be a year of two very different halves," chairman Stephen Boyd said.

While Pittards recorded a small operating profit in the first half, it recorded much heavier losses in the second half due mainly to the impact of the weak US dollar, Boyd said.

"In the light of the continued uncertainty about the US dollar and the global economic climate, we inevitably remain cautious in the short term but we are committed to the further development of our strategy to change the shape of the business to make it more robust and enable a return to profitability," he said.

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