Fodens stocking problem
12th January 1979, Page 19
12th January 1979
Page 19
Page 19, 12th January 1979
— Fodens stocking problem
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A MASSIVE drop in the profits of Fodens has been blamed on the need to keep big stocks for immediate export, coupled with a gap in contracts for export vehicles.
A company spokesman told CM that Fodens is geared to a 40 per cent export production and there are few big contracts to be had at present.
He said that the current Iranian situation has unsettled the rest of the Gulf states and buyers were now thinking twice before placing an order.
But where the buyers did order, it was for 50 or more vehicles with immediate delivery, "and this ties up a phenomenal amount of capital," he said.
The company's profit figures dropped from £1.2m in 1977 to only £112,000 for the first half of the current year, but the board is expecting an upturn in 1979.