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Exports leave ERF back in the black

19th December 1991
Page 11
Page 11, 19th December 1991 — Exports leave ERF back in the black
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Which of the following most accurately describes the problem?

• ERF's strong export performance has resulted in a halfyear pre-tax profit of £330,000, against a £1.36m loss last year.

Chairman Peter Foden believes the UK recession has bottomed out, but does not expect a breakthrough until well into 1992. "There is still a lack of confidence for placing orders," he says.

The Sandbach-based truck maker benefited from a £25m export order to Zimbabwe in January, which it is still working on. The order, for 440 tractive units, was part of an Overseas Development Agency package (CM 7-13 Feb).

Exports accounted for 35% of ERF sales in a half-year when the company turned over £58.4m, compared with £53.3m in the same period last year.

ERF has cut its overheads by reducing jobs, suppliers and engineering spend, as well as refusing to give "ridiculous discounts" says Foden.