Kasen issues profit warning
Chinese upholstered furniture, furniture leather and automotive leather manufacturer Kasen International Holdings Limited has issued a profit warning for the financial year ended December 31, 2007, as a result of a “number of adverse factors” including weaker demand from customers due to the downturn in the US housing market, the appreciation of the Chinese currency against the US dollar, the rising price of chemicals, foam, timber and labour, and a reduction in export tax rebates.
The company had already reported a 45% fall in profits for the first half of 2007.
Founded in 1995, according to the China State Statistical Bureau, China Leather Industry Association and China National Furniture Association, Kasen is the largest leather products and upholstered furniture manufacturer in China, based on revenue.
