Spanish stretch fabric maker Dogi International Fabrics posted a €2.8m operating profit in 2004 - up from a €3.8m operating loss the year before- as the company boosted Asian output and cut costs.

Sales fell 1.7 per cent to €148.2m as the euro's continued strength against the US dollar and Asian currencies triggered a €2.7m conversion loss, the company said in a statement.

Barcelona-based Dogi said net losses declined 69 per cent to €2.3m, meeting restructuring targets under which the company plans to make an undisclosed net
profit this year.

Dogi said efforts to streamline and increase output at its China, Philippines and Thailand manufacturing facilities helped boost operating earnings. Other efforts to improve and launch new products in Europe also helped improve margins.

Dogi highlighted the strong performance of its China division, which delivered a 22 per cent turnover increase last year, and said the majority of its future growth will stem from Asia.

By Ivan Castano.