Aga feeling heat from credit crunch
Oven maker Aga Foodservice has become the latest firm to signal weakening consumer spending with "mixed" trading so far this year.
The company said orders for its Rangemaster cookers are up more than 5%, but warned sales of Aga cast-iron cookers are expected to be flat in the UK during the first half.
It added cast-iron sales will fall in Ireland, where the market is "very weak".
Aga indicated that a slowdown in the housing market was among the factors affecting trading. Sales of "big-ticket" items such as cookers, washing machines and fridge freezers as are seen as most at threat from a property slump as fewer home sales means reduced demand.
Out-going chairman Vic Cocker, said: "Trading is mixed and sector data indicates the value of cooker sales has fallen this year in most international markets. While a slowdown in housing transactions continues, Aga expects to show underlying progress this year."
The update comes ahead of the Birmingham-based company's name change to Aga Rangemaster, after the sale of its commercial Foodservice arm for £265 million last year.
The company said its focus on being a single consumer company, alongside ownership of complementary brands such as interiors group Fired Earth and French cooker business La Cornue, is starting to bring "tangible" benefits.
Aga said trading at Fired Earth has improved and orders this year are up by more than 10%. It is continuing to improve efficiency and cut costs as it battles rising commodity prices.
Aga is spending £3.5 million this year on marketing its Aga ovens led by a "Love Aga" campaign, which includes endorsements by celebrities such as Blur musician Alex James, aimed at attracting younger consumers.
The firm makes its flagship Aga ovens at a manufacturing operation at Coalbrookdale near Telford, while Rangemaster products are made in Leamington Spa.
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