Avon issues warning over contract challenge

ERJ staff report (DS)

London - Avon Rubber said it will delay deliveries of protective masks to the US military following a legal challenge from a competitor which lost out in the bidding process. The share price fell around 6 percent on the news.

Avon said in a statement, “One of the losing bidders has raised a contractual protest to the DoD, which will delay delivery dates for this order, although our expectations of deliveries for the full year remain unchanged. Deliveries against our $6.1m filter order, placed under a separate three year contract and announced at the same time, are unaffected.”

Avon added, “In Dairy strong market conditions prevail and we have seen further growth in sales of our Milk-Rite brand, in particular the Impulse Mouthpiece Vented Liner (IP-MV) which achieved a 10% market share in North America, offsetting weaker demand from some of our OE customers. We have also opened a sales and distribution centre in China to further capitalise on the extensive opportunity in that region.”

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Press release from Avon Rubber