CEAT skids on shutting units

Tyre-maker CEAT declined 2.03% to Rs 38.55 at 13:59 IST on BSE, after the company said it has temporarily shut down two its plants in Maharashtra to avoid inventory pile-up.
The stock hit a high of Rs 40.10 and a low of Rs 38.30 so far during the day. The stock hit a 52-week high of Rs 198.80 on 4 February 2008 and a 52-week low of Rs 32.90 on 20 November 2008.
The company's current equity is Rs 34.24 crore. Face value per share is Rs 10.
The company has temporarily shut down its plant at Bhandup and Nashik in Maharashtra due to avoid inventory pile-up. It has shut its Bhandup plant from 26 December 2008 to 28 December 2008, and its Nashik plant from 25 December 2008 to 31 December 2008. The plants will continue routine maintenance operations during the shut period, the company said.
High interest rates and sluggish consumer spending have dented demand for automobiles forcing many auto component makers to shut down their units to avoid inventor build up
CEAT, previously Ceat Tyres, the flagship of the RPG group, manufactures steel-belted radials for passenger cars. The range of tyres manufactured is marketed under the Ceat, Samraat and Secura brand names.
CEAT reported a net loss of Rs 28.83 crore in Q2 September 2008 as against net profit of Rs 25.51 crore in Q2 September 2007. Net sales rose 14.9% to Rs 670.15 crore in Q2 September 2008 over Q2 September 2007.