Headlines:
| $1.1bil in losses at JA Producers Group |
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| Thursday, 20 November 2008 | |
 Jamaica
Producers Group's financial woes have worsened with losses skyrocketing to more
than $1 billion.The company's financial results for the 40 weeks ended October 4 show a $1.1 billion loss compared to a $326 million loss during the corresponding period last year. Jamaica Producers says its loss position worsened during the third quarter as a result of deteriorating economic conditions in the United Kingdom and Europe, which are its primary markets.  Restructuring
charges and Tropical Storm Gustav placed additional burden on the company.Jamaica Producers farms in eastern Jamaica were ravaged during the passage of Gustav in August. The company says the current losses are unacceptable and it is looking at ways to turn around its operations including a further exit from unprofitable and non-core business activities. Millions to wrap up banana exports  And it has been
revealed that Jamaica Producers paid out $54.4 million during its recent
redundancy exercise.The costs were associated with the closure of the Eastern Banana Estates in St. Thomas and a part of the acreage at St. Mary Banana Estates. More than 400 workers at Eastern Banana lost their jobs last month. Jamaica Producers announced in September that it would cease banana production at the location due to devastation caused by Tropical Storm Gustav. |