Mayflower Corporation, the British bus-builder that employs 200 people in Northern Ireland, suffered a £20 million sterling (€32.69 million) slump in pre-tax profits last year according to its latest full-year results.

The bus and coach group blamed the downturn in the American market for heavy trucks as the key factor for its disappointing performance in 2001 during which pre-tax profits fell from £50 million to £30.2 million.

Although Mayflower's turnover increased to more than £647 million, cashflow fell slightly which is likely to push dividends down by more than 25 per cent this year.

The Mayflower Corporation has made more than 1,000 people redundant in the last 12 months as part of its drive to realign costs in light of falling profits and market demand.

The group's Northern Ireland plant has largely escaped the restructuring programme to date. Its Belfast division, formerly known as Walter Alexander, employs more than 200 people.

It was recently merged with Mayflower's British bus and coach businesses, Dennis and Plaxton to create TransBus.