High hopes for 200221 May 2002
The Elmo Leather Group have reported a 12% increase in group sales during 2001 to reach SEK985 million (US$95 million). Operating losses were SEK108 million (US$10 million). The main reasons for the decline are the restructuring costs incurred in shutting down production in the US, escalating raw hide prices and lower sales volumes in north America. Elmo hope that the fall in demand for furniture leather both in the US and Europe will improve in 2002, although demand remains weak at present. Orders for automotive leather are unchanged and remain stable. Elmo believe that production restructuring and a concentrated product suited to one global Elmo range will mean annual cost savings that will have a positive impact on profits during the current year. Part of the groups sales volume in north America this year will be lost following the US plant closure.