Rover to miss break-even target
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Manufacturing News, Source : TheManufacturer.com
Published : 30 Apr 2002 8:49
MG Rover has admitted that it will miss its break-even target this year after its business plan failed to anticipate sterling's continued strength.
Rover's chief executive Kevin Howe warned that losses were likely to continue for several months longer than expected but insisted profitability was still in sight.
Figures for 2001, due in June, are expected to show Rover making losses of between £160m and £170m. This would be a sharp improvement on the £254m lost in 2000 but hopes of eliminating losses entirely this year have been dashed.
"It's a tough market," said Mr Howe. "We still lost money last year and we will still probably lose money this year but we are rapidly coming down the curve towards profitability.The exchange rate is not where we hoped it would be. When we drew up our business plan, we were five per cent more pessimistic than the most pessimistic forecast you could find anywhere in the financial world and we have still turned out to be several per cent too optimistic."
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