The company, which owns industrial thread and consumer textile business
Revenue from the Coats' industrial division increased to
The company said industrial demand over the first half was "encouraging", especially in
However, it said crafts' sales were lower due to lower demand for fashion handknitting products in the
Looking ahead, the company said regional variations in consumer demand for Coats' products are expected to continue, with a broadly positive outlook in
In addition, raw material costs are expected to continue to trend marginally upwards and payroll and other inflationary pressures are set to continue in many countries in which Coats operates.
Coats expects the industrial division to deliver year-on-year sales improvement for 2014 with volume growth through market share gains, new market entry and underlying market volume growth. However, trading is expected to remain challenging for the Crafts division although the unit is expected to improve in the second half.
A strategy review is being undertaken in EMEA Crafts and is due for the fourth quarter 2014.
"At a group level it is expected that, while operating profit will continue to be impacted by Crafts, attributable profit will be in line with market expectations,"
The stock closed flat at
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