ACF HIT BY GOVT COST-CUTTING MEASURES

Dutch company ACF Holding was affected in 1991 by the Dutch government's measures to reduce health care costs, the company said in its 1991 annual report.

Net sales for the year were 1.24 billion guilders ($668.5 million), down 0.8% on the previous year. The small decline was attributed to the disposal by ACF of a number of companies as part of a restructuring program. ACF pointed out that companies participating in core activities achieved growth in the region of 6%.

Net profit was 23.8 million guilders, up 68.8% on the 1990 level. Operating profit declined 27.5% to 32.9 million guilders. This fall was mainly a result of divestments and start-up costs for the company's wholesale division's readjusted logistic system, and accelerated depreciation.