LONDON (April 21, 2008) — Avon Rubber P.L.C. said it expects to post a loss in the first half of fiscal 2008, caused by delays in the signing of a critical contract.
Once the contract is signed, however, the company forecasts that it will record be in the black in the second half and for the full year.
Avon has been expecting confirmation of the multiyear contract for the M50 U.S. military respirator for some time. It said the government has taken longer than expected to complete its legal and administrative checks.
The company said it is in final contract negotiations with the Department of Defense for this five-year contract worth more than $100 million. Avon said government funding has already been committed for long lead items to allow Avon to commence production immediately.