UK leather producer Pittards posted losses of £2.59 million ($3.7 million) for 2001, compared to profits of £3 million ($4.27 million) in 2000, citing the foot and mouth epidemic in the UK, the global economic slowdown and the closure of the company’s Kinghorn fellmongery in Scotland.

Pittards had already issued a warning in an interim statement in September, 2001 that profits would be down sharply. In the event, £1 million of the total losses were one-off costs associated with the closure of the firm's fellmongery (see leatherbiz.com November 12, 2001: ‘Pittards to close Scottish fellmongery’).

Group managing director John Pittard admitted to being "disappointed" with the results, but stressed they should be judged in the context of the leather industry as a whole and the "exceptional" trading conditions experienced during 2001.

He was more optimistic when talking about the future, saying that customers who had de-stocked throughout the second half of 2001 were now beginning to come back on stream.

He also referred to major new business gains by the company’s shoe and glove leather divisions. Barring unforeseen circumstances, he said he expected the company to make much better progress during the year. He also saw the company benefiting from good cashflow management, which has left it with a strong balance sheet.