Cable price fall costs 500 jobs at BICC
Wednesday 21 October 1998
The cuts, which will cost pounds 25m in charges, include 200 redundancies as a result of the partial closure of a cable factory in Deeside, North Wales, which BICC announced in August. Most remaining job cuts will occur when BICC closes parts of its plant in Clayton, Australia.
Another 100 jobs were lost as Slimma, the womenswear manufacturer, revealed it was closing down a plant at Cannock in Staffordshire. The move means that products representing 75 per cent of Slimma's turnover will now be made overseas.
BICC said prices for its optical-fibre cable have fallen 10 per cent in 10 weeks to the point where only the most modern plants could make the cable profitably. "Prices have gone down more than we would have thought," said Alan Jones, the chief executive. "We had hoped for growth of 20 per cent but demand in Europe is very flat."
Shares in BICC slumped 14p to 42p - their lowest in the company's 35- year market history - as brokers cut profit forecasts to pounds 68m for the current year and pounds 79m for 1999, most of which will come from Balfour Beatty, the group's contracting division.
Mr Jones gave little hope of a speedy recovery. "The next two years will be difficult to predict," he said. The company hinted that it was looking at ways to boost its share price.
- 1 Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
- 2 Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
- 3 Sussex couple die in suspected Christmas Day 'suicide pact'
- 4 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 5 The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
UK weather: Warning for more snow and ice as freezing temperatures and gales hit Britain
UK weather: Travel chaos continues as King's Cross train delays add to snow on roads
The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
North Korea calls Barack Obama 'a monkey' in latest attack as 'The Interview' row festers
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Immigrants make UK racist, says Ukip councillor Trevor Shonk
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...