BRADFORD-ON-AVON, England (July 25)—Avon Rubber P.L.C. is warning shareholders it expects lower profits in its automotive division in the second half of the year because of lower automotive production in North America, high raw materials prices and intense competition.
Avon said growth is occurring as expected at its Orizaba, Mexico, automotive hose plant, which supplies the North American market. Recent U.S. approval for its respirators came late in the firm´s financial year, so this year´s sales may not be as high as anticipated, Avon said.
Expected strong demand for Avon´s new flexible storage tanks has occurred, the firm said.