The continued strength of the euro may force further layoffs at Donegal Creameries' confectionary subsidiary, Oatfield, the company warned yesterday.
Speaking after the company's a.g.m. in Letterkenny, Co Donegal, managing director Mr John Keon, said the export side of the business was experiencing ongoing difficulties as a result of the euro's strength against sterling and the dollar.
"If that continues we will have to achieve further efficiencies and that is likely to result in further layoffs," he told The Irish Times. Oatfield employs 100 people and had to lay off about one-tenth of its workforce last year. It manufactures sweets for the domestic, US and UK markets. Around 60 per cent of its exports are destined for own-brand sale in Britain.
The meeting heard that overall, the company enjoyed a good year in 2002. Chairman Mr Lexie Tinney said that pre-tax profits grew from €5.4 million in 2001 to a record €5.8 million.
The directors recommended a final dividend of 6.4 cents per share for the year ended December 31, 2002. This brought the total dividend to 11.4 cents, a 5.6 per cent in crease on the previous year.
