Textilana Liberec, one of the five leading producers of woollen fabrics and yarns in the Czech Republic, posted January-October sales of Kc611.7m ($15m), down by 10 per cent year on year, Textilana economic director Pavel Jurica told the CTK news agency.

In September the firm failed to reach the projected Kc592m ($14.5m) in sales, which were lower by nearly Kc20m ($491,022).

"Last year the company launched restructuring. Production is being concentrated from five to two plants, thus the production capacity has sank roughly to a half," Jurica explained.

In October the company posted a profit of Kc308,000 ($7,562), but for the Jan-Oct period it reported a loss of Kc99m ($2.4m).

Restructuring, which should be completed in the first months of next year, has led to staff cuts. Now Textilana employs 1,350 people, down by 933 from January 1999, and after the restructuring is over, the company will have some 1,150-1,200 staff and turn over some 4.4 million running metres of textile annually.

Textilana exports over 75 per cent of its output, and the largest buyer countries are Germany (25 per cent of output), the USA, Canada and EU countries.

In 1999 Textilana posted a loss of Kc199.265m ($4.8m) on sales of Kc742.178m ($18.2m). Its accumulated loss now amounts to Kc335.807m ($8.2m). This year the company projects to generate Kc616m ($15.1m) in sales and incur a loss Kcl20m ($2.9m).

Textilana is 49.91 per cent controlled by PYRR, while 33.4 per cent of its shares is in the hands of C.S. Securities. It has a Kc922.084m ($22.6m) share capital.