BRADFORD-ON-AVON, England (March 23)—Avon Rubber P.L.C. hinted at production reducation and changes for non-core businesses because of continuing cutbacks by its major automotive customers. The company said it will conduct "more radical rationalization of its global production activities" and take "appropriate actions for non-core parts of the business." Market conditions in North America, where Avon generates more than half of its $465 million in annual sales, are especially tough, Avon said, and have resulted in substantially lower operating profits during the first five months of the company´s fiscal year To compensate for lower sales in North America, Avon has cut production and laid off employees in Mexico and the U.S.
Automotive cutbacks causing changes at Avon
Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].