The Hong Kong-based leather goods manufacturer Hua Lien International Co Ltd has reported a 41.6% year-on-year decline in profits for the half-year period ended June 30 200, to HK$24.8 million (US$3.1 million).

The company attributed the fall to the combined effects of a HK$54.382 million decrease in sales and the cattle disease-induced rise in the price of hides. Other factors cited were a drop in by-product sales and a HK$3.285 million increase in staff costs and other administrative expenses.

The company said it did not expect to see any improvement in sales in its major market of the United States during the second half of the year – especially in view of the terrorist atrocities of September 11.

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