Shares of Chamberlin Plc (CMH.L) fell about 16 percent Monday morning, as the company said it expects to report full year pre-tax profits below current market forecasts. However, the board continues to view medium-term prospects positively.
In a trading update for the fiscal year ending March 31, 2013, the specialist foundry and engineering group stated that market conditions for its foundry operations have materially softened and that it experienced reduced activity in several of its sectors.
The current economic uncertainties have resulted in customers reducing orders or deferring them to a later date, the company said. However, Chamberlin stated that it remains cash generative and well-placed operationally.
While reporting its half year results in November end, the company had warned uncertainties to the general economic outlook in 2013. For the first half, the company had posted profit before tax of 815 thousand pounds, up from 710 thousand pounds year ago. Underlying profit before tax increased 15 percent to 914 thousand pounds.
CMH.L is currently trading at 124 pence, down 23 pence or 15.65 percent, on a volume of 90,414 shares on the LSE.
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by RTT Staff Writer
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