Aga Rangemaster profits fall

Aga Rangemaster are one of the largest manufacturers of cast iron aga cookers. They also make conventional gas and electric cookers. For the second half of 2008, the company has predicted 'substantially' lower sales than in the preceding six months.

The credit crunch and dire economic banking crisis appears to have severely effected consumer confidence, with a sales fall of nearly twenty percent in the month of September.

The chief executive of the manufacturing group has been on record as saying this stagnation in sales could not come at a worse time. The months of autumn are usually key to the overall profitability of manufacturers of kitchen appliances.

Stock market reaction to the official statement was less than positive, with shares falling over eighteen percent. Sales of the more expensive Aga cookers have particularly been hit, in comparison to the gas and electric Rangemaster cookers.

With an Aga cooker costing within the region of seven thousand pounds, people's confidence appears to be especially hit when it comes to high end equipment.

The slump in the housing / construction industry also appears to have massively effected Aga sales. Research has indicated that people are most likely to renovate a kitchen when they move into a new home. With housing sales at a virtual standstill, it's not hard to see another reason for slowing aga sales.

The news is far from heart warming for the company and it's shareholders moving into 2009. Dividends will be cut for 2009, due to the expectation of continuing financial stagnation, limited credit and consumer confidence.