30.07.2008

Sevcon takes a hit

Sevcon the supplier of motor control and other electronics to the aerial lift, fork truck and electric vehicle industries, has reported a third quarter loss after incurring costs of $700,000 to close its UK production operation.

The restructuring costs included one-time termination costs for 41 employees and associated professional fees. Sevcon says that the changes will remove $2 million of costs annually.

The closure followed a strategic review which identified an opportunity to significantly reduce ongoing manufacturing costs through further reliance on subcontractors to manufacture the Company's products.

In its nine months to June 28th, the company generated $30.8 million of revenues, up almost seven percent on the same period in 2007.

However pre tax profits dropped by over 57 percent to $747,000 and sales in the most recent quarter were down by three percent in spite of a positive currency contribution. The Company said that sales increased in North America and in the Far East, but fell in the European aerial lift sector.