Fedon: fluctuating first quarter

A difficult time, but good sales for the Fedon Group. After a 2003 that closed with growth of 2.7% (+5.10% at constant euro-dollar exchange rates), the continuing crisis in the eyewear sector due to ever-tougher competition from the Far East and the significant depreciation of the dollar against the euro, has led to a slowdown in the positive trend of previous months.

However, over the period the order portfolio has returned to maximum levels, thus creating a solid basis for an immediate reversal of the trend.

A downturn also in the average value of products (-6.8%), a consequence of the market's constant search even lower costs and prices.

The sector for small leather articles distributed under the Giorgio Fedon 1919 and Sos labels is good (+29.7%): top-of-the-range writing and desk articles which owe their success to quality craftsmanship and a serious and minimal image in line with the most up-to-date fashion trends and contemporary tastes.

President Callisto Fedon confirms that the Group has for some time been structured to consolidate its leadership by improving production, commercial and organizational structures. 'For eyewear cases we are fighting a battle based on continuous product innovation and efficiency. Increasingly, innovation means we offer our clients original and technological solutions and ideas for their eyewear. Efficiency means improving the logistics and production cycle with top-level automation and the strengthening of decentralized production.'

However, the Group pursues a policy that aims at maintaining a strong production presence in Italy to serve its European clients, accompanied by investments in decentralization, such as the strengthening of the plant in Rumania which led to production capability being doubled, and plant modernization in Slovenia and China.

In 2004 the Group will continue to follow the road of rigor and efficiency.