March 9, 2007
March 9, 2007 - Chargeurs, France, has reported a higher than forecast income for 2006, recovering from a net loss in 2005, and has cut its net debt almost in half. Sales remained stable.
In its consolidated results for 2006, the company reported revenue in U.S. dollars of more than $1 billion, slightly up on the prior year. Operations responded to restructuring efforts and operating profit was up to nearly $33 million compared to a loss of more than $48 million in 2005. Net income recovered to $17 million from a net loss of $86.5 million a year ago. The company cut its net debt from $115 million at the end of 2005 to $61.5 million at the end of 2006.
Revenues in the Chargeurs Wool segment contracted by 3 percent to approximately $294 million. The business returned to profit, however, with an operating income of $2.6 million in 2006 vs. a loss of more than $35 million a year ago, the result of lower production costs following re-organization and improved margins. The company commented that it had doubled capacity in China and that it was "well placed to reap the benefits of this fast-growing market."
The outlook for 2007 is for the group to achieve a further strong growth in earnings, said Chargeurs. The company expects to achieve revenue of more than $1 billion, operating income of $47 million and net income of $25 million in 2007. Reprinted in part from Inteletex