De La Rue Sees FY11 Sales, Paper Production Below Views

20th Jul 2010 14:11

LONDON (Dow Jones)--De La Rue PLC (DLAR.LN), a U.K.-based commercial security printer and papermaker, said Tuesday it is now expected that paper production and sales in fiscal 2011 will be materially lower than originally planned. MAIN FACTS: -At the announcement of the Group's preliminary results in May, the Board expected currency volumes for the year to be at similar levels to FY2010 albeit with lower margins and with a greater than normal weighting towards the second half. -Quality and production irregularities at one of the Group's paper production facilities mean some paper production has failed to meet certain quality specifications. -As a consequence the production and shipment of this specification paper has been suspended whilst the circumstances are fully investigated. -The full impact on the current year financial results and on the Group's prospects has yet to be determined. -Shares at 1310 GMT down 92.5 pence, or 10%, at 831 pence. -By Tommy Stubbington, Dow Jones Newswires; 44-20-7842-9268; [email protected] (END) Dow Jones Newswires July 20, 2010 09:11 ET (13:11 GMT)