CARPET manufacturing giant Brintons is to axe 42 jobs following a slump in demand which has pole-axed company operating profits by more than a third.

All the redundancies will be at the firm's Kidderminster plant which has been hit by a further fall in orders from the tourism and leisure sector since September 11.

Company secretary Eddie Gardiner said most of the latest round of lay-offs would be effective from December 31 with the remainder by the end of February.

The firm said profits had fallen from £10.6 million to £7 million in the financial year to June.

A slump in the US market starting in late 2000 has been cited as the major cause. But demand from Far Eastern markets was also "subdued" and Australia remained "depressed" following the boom which accompanied the 2000 Sydney Olympics, a spokesman said.

The spokesman added: "In the new financial year, the terrorist atrocities of September 11 led immediately to a reduction in demand from the USA hotel market as hotel occupancy rates fell.

Brintons managing director Alan Folwell said: "It has been necessary for us to reduce capacity across the group and we have taken action to reduce all costs and defer unnecessary expenditure until conditions stabilise and improve.

"We expect to see continued weak demand from the USA hotel market for the foreseeable future and we remain hopeful the UK economy will continue to stay strong enough to encourage consumers to spend on high-ticket items - like carpets."

The firm announced a one-off operating profit following the sale of its old manufacturing site in the town centre and the disposal of its former London showroom.

The firm said capital investment continued at a "high level" with the major investment being the new £6 million dyeing plant on Stourport Road which is expected to be operational by Easter.