Chemical costs corrode margins at Courtaulds
Thursday 25 May 1995
Wood pulp and acrylo nitrile, two of the group's key raw materials, had doubled in cost in the past 12 months, he said, with spot prices leaping from $400 to $1,200 a tonne for the former and from $600 to $1,800 for the latter.
The increases were being passed on, but there was a time lag and they raised prices only with misgivings. "Our customers - and their customers - are suffering," he said.
The slimmer margins cut operating profits to pounds 167m in the year to March, from pounds 176m the previous year, before exceptional items.
At the pre-tax level, profits rose from pounds 146m to pounds 151m, with the comparison flattered by certain one-off charges in the comparable period. A final dividend of 11.25p raises the total 4.1 per cent to 15.4p.
The shares put on 14p to 477p yesterday on relief that the figures were not worse. Nonetheless, Jeremy Chantry, chemicals analyst at brokers Kleinwort Benson, warned that although acrylo nitrile prices may now have peaked, pulp prices had further to go. He has lopped his profits forecast for this year by pounds 10m to pounds 175m as a result.
Mr Huismans said he was "very comfortable" with the progress of Tencel, the cotton-like artificial fibre on which Courtaulds has spent pounds 200m so far. Start-up losses were less than pounds 10m last year. Tencel trials have been under way with Marks & Spencer for a year.
- 1 The BBC has just done more to eradicate ‘terrorism’ than all our wars since 9/11
- 2 Dog thinks owner is drowning in lake, dives in and tries to pull him out
- 4 Chilling drone footage captures Auschwitz ahead of 70th anniversary of liberation
- 5 Phil Neville backtracks on Tomas Rosicky 'I'd smash him' comments from Match of the Day 2
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Greece elections: Greek PM Alexis Tsipras takes aim at 'neo-liberal' Europe as country gears up for prolonged austerity battle
Auschwitz liberation 70th anniversary: Woman sent to three Nazi death camps describes surviving gas chamber
Pornhub star Mia Khalifa receives death threats after being ranked the site's top adult actress
Prince Philip set to be knighted by Australia: Celebrate by reading his greatest gaffes
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
Leaked documents show Ukip leaders approve NHS privatisation once it becomes more 'acceptable to the electorate'
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...