Trinity Biotech warns of possible profits shortfall

Trinity Biotech said pressure on margins, combined with rising Irish wage costs due to a labour shortage, could result in operating…

Trinity Biotech said pressure on margins, combined with rising Irish wage costs due to a labour shortage, could result in operating profits for 2001 being 10 per cent lower than analysts' estimates.

Alhough sales for the final quarter exceeded expectations, rising to $7.9 million from $6.6 million, gross margin fell from 49 to 45 per cent due to an abnormally high percentage of sales into Africa and the Middle East, where margins are lower, the company said.

Fourth-quarter results included an exceptional charge of $1.287 million related to the decision to close the factory of the Seattle-based Bartels business in December and move production to San Diego, New York and Dublin.

For the full year to December 2000, pretax profit was $4.948 million, compared with $4.16 million a year earlier, on sales of $29.742 million compared with $26.104 million.

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AFP