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Coral Products loss deepens due to dwindling CD, DVD marketstevenkiernan, 29 August 2007Be the first to comment on this article Coral Products, the media packaging manufacturer, has blamed overcapacity in the industry for a marked decline in sales of CD and DVD packaging. The company, based at Haydock, Merseyside, has revealed a pre-tax loss of £2.2m for the year to 30 April, compared with a £977,000 loss last year. Sales fell by 13% to £14.3m. CD sales have been hit by the increasing popularity of digital media, while sales of DVDs have also declined, but at a slower rate. Rising raw material costs, predominantly in plastics, have forced the company to increase its prices, but Coral predicted these would stabilise. Coral is also considering the sale and leaseback of its main production facility and warehouse to generate £2.5m net in cash to continue operations. Chairman Geoffrey Piper said: "The media product industry now faces serious demand problems and we are, therefore, focusing attention on attaining new business in other areas." Coral's statement came a month after MeadWestvaco, the US packaging group, also reported a fall in CD packaging sales. Speak Your Mind |
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