Laird reports significant profits losses

• Book ID: 104383103
• Publisher: Elsevier Science
• Year: 1999
• Tongue: English
• Weight: 268 KB
• Volume: 1999
• Category: Article
• ISSN: 1350-4789
• DOI: 10.1016/s1350-4789(99)90162-9

✦ Synopsis

Laird reports significant profits losses

Laird, the engineering group, has announced a 75% reduction in its 1998 pre-tax profits due to start-up losses at it new US automotive sealing plant and restructuring costs in Germany.

The £34.5 million US sealing plant made an operating loss of£16 million, with the start up losses further compounded by problems in obtaining raw materials from local sources. The group expects the US sealing business to make a further loss this year before moving into profit in the final quarter.

The pre-tax profits of £23.7 million also included an exceptional charge of £14.3 million for the restructuring costs of its German sealing operations, which resulted in the loss of 350 jobs. However, it is expected to produce £5 million in annual savings for the group.