RATTI NET OFF 84.8% FOR 1996
MILAN — Como-based fabric manufacturer Ratti SpA reported net profit last year fell 84.8 percent, while sales dropped 9.8 percent.
Net profit in 1996 came to $1.1 million (1.9 billion lire) on consolidated net sales of $194.3 million (325.8 billion lire). In 1995, the firm posted net profit of 12.5 billion lire on sales of 361 billion lire.
Ratti attributed the declining sales and profits to a difficult textile market and the effect on sales of the appreciation of the lira last year.
“These factors had a significant impact, considering that more than 60 percent of the group’s total sales are derived from exports,” Ratti said in a statement, adding that the strength of the lira cut into sales and operating profit.
Ratti also said the bottom line felt the burden of a group restructuring effort designed to recoup efficiency.
Despite the effect of the lira and extraordinary restructuring charges amounting to $1.4 million (2.3 billion lire), “consolidated net profit is still in the black,” Ratti pointed out.
Ratti also said that the company’s net worth declined to $3.8 million (6.3 billion lire) last year from 11.1 billion in 1995, due primarily to the acquisition of Campi SpA, which produces silks for ties.