Engineering group’s shares crash after profit warning
The share price of engineering business 600 Group has plummeted by more than one-third this morning on the back of a stark profit warning.
Investors reacted badly to the company revealing it will fall “significantly below” its targets after being hit by the effects of the global automotive slowdown.
The Elland-based group has issued a profit warning after orders in the final quarter being well down on forecasts. Germany and the Far East markets were particularly poor performers.
It had previously anticipated “some short-term disruption” because of economic and political uncertainties, but the outlook has worsened in recent weeks.
That is despite a good performance in the UK, where orders are more than double last year. It said its newly-acquired CMS business is also performing well.
In a statement to the stock market, 600 Group said: “These positive factors will not be sufficient to make up the shortfall from the likely revenue reduction and as a result, the outturn for the full year is expected to be significantly below the Board’s previous expectations.”
However the group said it “remains optimistic” about its long-term performance and has a strategy in place to de-risk and diversify the business.