Avon still expects return to profits

Manufacturing News, Source : TheManufacturer.com
Published : 02 Apr 2007 12:51

Avon Rubber plc said today it still expected to return to profitability in the first half of the year and is pinning its hopes on the growth of its respiratory protection business.

Avon said it had made significant progress on its new M50 respirator and filter production facility in Cadillac Michigan, with an initial production order for the US Department of Defense successfully completed and follow-on orders in the bag.

The group’s dairy rubberware business was performing to expectations, Avon said and the engineered fabrications business in the US continued to grow sales and improve operational performance. However, progress in the UK-based aerosol gaskets operation was limited by

the effect of the weak US dollar.

“Our expectation of a return to profitability in the first half year remains unchanged. This would represent a significantly improved result compared to the £3.3 million loss incurred by our continuing businesses in the second half of 2006,” Avon said.

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