Closures trigger Courtaulds dive
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.COURTAULDS, the chemicals and fibres group, yesterday surprised the City with a plan to shut down six manufacturing plants with a loss of 650 jobs in Europe.
The cuts were announced as Courtaulds reported taxable profits of pounds 96m, up from pounds 88m, for the half year to 30 September. Earnings rose from 18.1p to 19.5p and the dividend has been improved from 3.8p to 4p.
However, the results were below expectations and news of the closures and a dismal trading outlook led analysts to downgrade full-year profit estimates. Martin Evans of Hoare Govett slashed his taxable forecast by pounds 30m to pounds 150m before exceptional items. The shares dived 44p to 432p.
Courtaulds said the closures would cost about pounds 52m this year and were prompted by difficult trading conditions and falling exports to the Far East, which was becoming increasingly self-sufficient.
As a result it was accelerating its plant closures in Europe and would also integrate the aerospace sealants business with its coatings arm. The changes will reduce the number of coatings factories by a third to 12. Most of the job losses will be in Continental Europe although about 100 could be lost in Britain.
The group is expanding in other sectors. It is building a second factory to produce Tencel, a synthetic fibre, at a cost of pounds 90m, to meet growing demand in the US and Japan. The plant will more than double production capacity. Separately, it is also setting up four plants in the Far East.
Bottom Line, page 38
(Photograph omitted)
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments