90% increase in profits posted by Swedish leather group
Sweden’s automotive and furniture leather specialist, Elmo Leather Group, has posted profits of SEK 52.2 million ($5.1 million) for the year 2000 – a 90% increase on the previous year’s figure.
Achieved on a turnover of SEK 881.5 million, the increase was attributed to strong demand, higher volumes, better utilisation of resources and continued rationalisation.
Significantly higher raw material prices were offset by increased volumes and prices, which were raised by the company twice during the year. Sales volume increased 13% to 3.5 million square metres while Elmo Leather A/S of Denmark (formerly Swewi A/S) acquired in October, contributed sales of around SEK 35 million. Of total Group sales, Europe accounted for 44%, North America 44% and the rest of the world 12%.
In the short term, the company said it expects the current hide shortage situation to continue, and with it continuing high level of prices and extended delivery times. However, it also predicted that the EU will lift its restrictions sometime during 2001, and that when this happens, the situation will improve ‘relatively quickly’.
