Nike earnings slip 35 per cent: Sports marketing giant Nike Inc said its earnings fell 35 per cent in the latest quarter, reflecting continued weak sales, especially in economically reeling Asia. Nike also said advance orders for athletic footwear and apparel fell 15 per cent from year-earlier levels and announced plans to cut an additional 300jobs in its Asia-Pacific operations on top of the 1,600 company-wide job reductions announced earlier in the year.

British Aerospace profits up: British Aerospace Plc (BAe) has announced a 24-per cent jump in first-half profits, harvested from a record order book of 23.8 billion pounds ($39.81 billion). Pre-tax profits before exceptional items rose to 344 million pounds in the six months to June 30 from 278 million last time, on total sales of 4.24 billion pounds. The interim dividend was raised by 20 per cent to 2.35 pence a share on pre-exceptional earnings up 25 per cent at 14.2 pence. The company had seen a significant increase in its use of cash for working capital, largely due to the falling value of oil under its Al Yamamah arms-for-oil supply agreement with Saudi Arabia.

Bank of Korea tender to buy govt bonds falls short: The Bank of Korea bought only 30 billion won to 40 billion won worth of existing government bonds at a tender on Friday, an official at the central bank said. Itfell far short of up to 500 billion won worth the central bank initially planned to buy in order to help stabilise the long-term interest rates.

UK's Coats Viyella postpones Viyella demerger

British threads and knitwear manufacturer Coats Viyella said it had postponed the demerger of its Viyella business although it remained committed in doing it. The company also warned that it was struggling to restore operating performance due to uncertain trading environment in many parts of the world where it operates combined with continuing strength of the sterling and subdued demand in the UK high street.

Australian fine wool seen under pressure in '98/99

Australia's fine wool industry, already reeling from a demand slump in Asian markets, faced even tougher times in 1998-99 ending June, a leading industry body said. The downturn in Japan and South Korea in particular was negative for fine wool demand prospects, Woolmark Co, formerly known as the International Wool Secretariat, said in itsannual review of the prospects for wool of 19.5 micron and finer. "This will keep pressure on auction prices for fine wool well into the 1998/99 season," it said. Production, sales and prices all declined in 1997/98 in the wool industry and are forecast to continue to decline in the current year. Woolmark estimates that Australian wool production decreased by three per cent in 1997/98, while total auction offerings fell by five per cent, mainly because of the Asian financial crisis.

Georgia showers aid late cotton

Most crop conditions improved as scattered showers provided relief to a few areas of the Georgia last week, according to the Georgian Agricultural Statistics Service. Some major agricultural areas of the state missed the showers. Cotton conditions remained steady during the week. The cotton boll open stage is about one week ahead of normal with harvest just beginning. Farmers in the southern part of the state continue defoliating cotton and accessing the damages from hurricaneEarl.

Raw wool imports decline in 1st quarter

Raw wool imports into the country is on a steady decline. During the first quarter of this year (April-June) these imports shave been declining on account of a dull export market for worsted textiles. In April the import of greasy wool was 3.2 million kgs but dropped to 2.50 million kgs in May and remained at 2.50 million kgs in June. An official of the Indian Woollen Mills Federation revealed that this year raw wool imports are expected to total only 30 million kgs last year. Consequently during the period March to June, India has recorded a 20 per cent fall in combing (wherein raw wool is converted into wool tops used for making fine woollen fabrics), states a recent Woolmark Business survey.

Hank yarn obligation on spinning mills may be lowered

The hank obligation on spinning mills would be lowered from the present 50 per cent to 30 per cent, informed Patodia, the outgoing chairman of the Southern India Mills Association (SIMA). Addressingthe 39th SIMA annual general meeting, Patodia said that there were also indications that the export of hank yarn below 60s count would be allowed within a limited ceiling. The textile commissioner had earlier gone on record saying that the textile industry coud expect certain regulatory rliefs from the government soon in this regard. Sima member mills were concerned over the deteriorating condition of the industry tossed between supply-demand mismatch allround increase in input costs and impact of the currency meltdown of the south-east Asian countries, and above all, excess spindleage.

India ready to meet hydro-carbon free jute bags demand

India is geared to meet the overseas demand for hydro-carbon free-jute bags for packing of cocoa, coffee and shelled nuts, Union textiles minister Kashiram Rana has said. "India is fully committed to the cause of ecology and quality and Indian jute industry is eager and has the capacity to supply the entire international packaging requirement," the minister saidlaunching jute contact promotion programme in Europe and Africa earlier last week. The textiles minister has said that India preferred a synergy between efforts of jute industry, European jute importers and consumer specifiers to take concrete step so that concerns about health-related to packaging could become a thing of the past.

Yarn exports to Russia on uptrend

In contrast to the general decline trend of yarn exports from India in the wake of the far eastern economic crisis, yarn shipment to Russia has continued to witness an uptrend in the last two years. But the Texprocil's yarn and thread committee has called upon exporters to exercise caution over the element of trade switching that is seen as the hidden factor responsible for the increasing trend in yarn exports to Russia rather than any genuine consumption of yarn happening in the country. This means that the shipment contracted for Russia exports are being diverted to some other countries/destinations, possible either to the far easterncountries or other non quota countries in Europe.

Open-end spinning mills in the South form association

The open-end spinning units, which form another segment of the textile industry producing coarse yarn out of waste cotton, have formed an association at the state level to safeguard their interest. About 30 representatives of the open-end spinning mills from differnt parts of the state met under the presidentship of KG Balakrishnan, honorary chairman, Indian Chamber of Commerce and Industry, Coimbatore and formed an association called the `Open End Spinning Mills' Association (OESM) and elected Mr G Kannapans, managing director, Kadri Mills, as its founder president. OESM converted the waste cotton and cotton rejects from other mills into coarse counts of yarn for supply to the handloom sector.

The cotton waste, rejected by the textile sector were thus converted into value-added products by the handloom sector through the service of OESM. These units faced the problem of acute raw materialshortage and increase in prices as the government allowed export of waste cotton, overlooking the needs of this segment. The imposition of excise duty on these mills and the sales tax imposed on these goods added to the burden of the industry.

Lerros, moving ahead with the right attitude

Lerros, the exclusive men's brand in casual wear has positioned itself wisely and is steadily making inroads into markets nationwide. Apart from the male image of the brand, there are other things Lerros is clear about. One of them being the value-price relationship. The company knows that the maximum premium a successful brand can charge is about 10-15 per cent of the actual price, otherwise the brand woill not sell. Another feature that can make a brand successful is design, and this is also the most valuable asset in the casual wear market.

Though Lerros entered the Indian market only in 1997, the Indian company has been supplying woven shirts to the German parent, Pearl Global, for many years. Sos, thedesign set up already existed, only marketing and distribution had to be put in place. Lerros today supplies its dealers about 45 designs in each delivery, that is, a 45-day gap, and there are at least 150 designs at any given season in the market.

Indian missions to persuade EU to drop anti-dumping duty on UCF

The textile ministry has alongwith the Indian missions abroad initiated moves to persuade individual members of the European Union to drop the provisional anti-dumping duty imposed on unbleached cotton exports from India, even as New Delhi has taken the issue to the Dispute Settlement Body (DSB) of the World Trade Organisation (WTO). Official sources said here that the EU had already levied provisional dumping duty on unbleached cotton from India and the definitive duty was to be finalised by October 9 at Brussels. And with hardly a month before the final duty is slapped, New Delhi has activated its missions abroad so that the EU appreciates India's concern and desists from slapping thefinal duty.

Export target for textiles may be hiked

The textile ministry may hike the export target to Rs 50,000 crore from Rs 48,000 crore lst year. Talking to newsperson on his return from a fortnight long tour of Europe and Africa, the union textiles minister, Kashiram Rana said that potential existed for enhanced Indian exports despite stiff competition from China, Taiwan, Korea and Hong Kong on account of the slong staple cotton produced in India. Rana and his high-level delegation had visited Dubai, Egypt, Ghana, Nigeria, Holland, Italy and Switzerland and held discussions with trade officials and textile and garment associations.

New export scheme to explore risky markets

The Export Credit Gualrantee Corporation (ECGC) is planning to set up a new scheme, the National Export Insurance Account which will provide protection to exporters exploring risky markets. Currently there is no cover provided to exporters who want to tap risky but potential markets and this new scheme will helpsuch exporters," an ECGC official said. The proposal which has been prepared and sent to the commerce ministry for approvals, takes into consideration the ministry's directive to exporters to explore new markets to increase exports. Exports have been declining over the past few months and the existing markets are showing no signs of further development.