Draftex reports six-month operating loss

LONDON (Aug. 14)—Salisbury, N.C.-based automotive sealing systems maker Draftex Inc. continues to be plagued by high startup costs and high personnel turnover, resulting in an $8.48 million operating loss in the six-month period ended June 30 despite considerably higher sales, the firm reported. The loss by the firm contributed to a 12.3-percent drop in United Kingdon parent Laird Group P.L.C.´s automotive business unit operaring earnings to $16.8 million. Laird said its U.S. losses stemmed from efforts to keep pace with a rapid production buildup linked to new car model launches, as well as from the costs of training and retraining the workforce. Draftex Inc.´s sales are expected to hit $95 million this year, nearly 60 percent ahead of 1999 sales.