Fedon: positive end to 2003

2003 closed with a net improvement for Giorgio Fedon & Figli SpA: billings increased by 2.7% to 57.853 million euros despite increasingly tough competition from the Far East and the dollar exchange rate, which saw the greenback dropping by up to 30% against the euro. At 2002 constant exchange rates, billings would have been 59.2 million euros with a positive variation of 5.10%.

The core business is cases for glasses (around 80%), followed by optical accessories (around 17%) and articles in leather (around 3%); with revenues divided amongst Italy (67%), Eu countries (22%) and the rest of the world (11%).

For president Callisto Fedon 'The positive year-end results confirm the growing success of our brands and products, even in an economic context that is difficult, particularly in the eyewear sector which is penalized by the long and persistent crisis. They also confirm that we have made the right choices and investments aimed at the continuing improvement of our production, commercial and organizational structure.'

For the Group, 2003 has been a year of many changes, with the acquisition of Fedon Printing, specialized in the production and personalization of microfibers and lens cleaning products, and 100% of Fedon America Inc. of Norwell, the American partner which has been distributing the products on the North American and Canadian markets since 1999. A new facility in Rumania was also inaugurated and apart from doubling in loco production capacity, it will considerably reduce the impact of labor costs. For Callisto Fedon 'Decentralization in Rumania as well as in Slovenia and China, together with the automation and robotizing supplied by Hawk, one of the companies in the Group, are the best response to the requirements of a market that is increasingly in need of competitive services and prices.'

As far as small leather articles are concerned, 2003 saw the real start of their organized distribution. Sales have doubled as a result and despite a very difficult market situation. Currently the total figure is around 3% of billings. Winning the Ispa Award, the sector's top recognition worldwide, at the Frankfurt fair for two years running (this has never happened before) and the second prize for the multiwrite pen in the same series, are an indication of the validity and success of the products.

2004 will also be a difficult year because of the continuing crisis in European consumption against a recovery in the United States and the Far East. Price competition will tend not to decrease and consequently the Group will continue to pursue the path of precision and efficiency. The first few months of the year have been normal with an order portfolio in line with expectations.