Tanfield blames recession for loss
Sep 30 2009 By Karen Dent, The Journal
ELECTRIC vehicle maker Tanfield has blamed the global recession for pushing it into the red and causing its turnover to dip by almost £63m.
The Washington firm - the world’s biggest electric commercial vehicle maker - made an operating loss of £11m in the six months to the end of June, compared to a profit of £10.3m in the same period last year. Turnover slumped by 68% to £29.9m from £92.8m.
The company cut around 170 jobs in two rounds of redundancies and put workers on short working times to reduce staff costs by around 40% but falling prices in its Powered Access aerial lifts division meant it still reported a loss.
Chief executive Darren Kell said: “Sales performance across the group continues to be constrained by the global recessionary environment. However, we took appropriate and timely corrective action to reshape the business.
“We continue to prepare for an eventual upturn in market demand in both our core business sectors and are already witnessing positive developments in the Zero Emission Vehicle division.”
Tanfield says it is well placed to capitalise on the growing demand for electric vehicles and is pushing further into the overseas market. It received orders for 50 of its Smith Ampere vans - the electric version of the Ford Transit Connect - from Holland and 15 for Hong Kong earlier this month.
It is also set to benefit as the North East becomes a hub for green, low emission vehicles and is one of four producers chosen to take part in the Government’s Low Carbon Vehicle Procurement Programme.
And it is part of two groups which won cash to create electric passenger vehicles as part of the Government’s push towards eco-friendly transport.
