A Case of Low Profits; Competition and Strong Pound Hit Packaging Firm
Byline: TONY MCDONOUGH
DVD and video packaging maker Coral Products yesterday issued a profits warning,blaming falling margins and the strength of the pound.
However, theHaydock firm, which in December reported a small rise in half-year profits, said the medium- term prospects remained encouraging.
The company is one of Europe's leading manufacturers and suppliers of DVD,CD and video cases.
In recent years,it has experienced difficult trading conditions as it strove to compete with low cost operations in other parts of Europe and the Far East.
In the trading statement the company said: ``The board expects that profit forecasts for the year ending April 30 will be below market forecasts and below the level of last year.
``This is primarily due to a recent fall in the selling prices bringing about a decline in operating margins coupled with the comparative strength of sterling.''
Last year's full-year pre-tax profit was pounds 1.2moff a turnover of pounds 16.4m.
Coral's managingdirector, Warren Ferster, told theDaily Post that competition from Europe and the Far East was ``fierce'' but that he was confident his company was holding its own. …