Courtaulds profits hit by strong pound
15 Jan 2000
Courtaulds' interim results for the six months to September show a modest improvement in operating margin from 7.5 to 8.2 per cent.
Operating profits remained 'level' but overseas performance was hit by the strength of the pound. The translation effect cost £6m and adverse transaction effect was another estimated £10m.
Gordon Campbell, chief executive, said: 'Progress was masked by the strength of sterling. The effects were acute in fibres and chemicals where our major facilities are in sterling and dollar areas.'
Sales of the fabric Tencel were below expectations with a fall in sales volumes.
* Courtaulds is seeking a partner with whom to merge its loss-making viscose businesses.
