International issues generate profit warning at engineering firm

Engineering firm, 600 Group has issued a trading update and profit warning for current financial year to 28 March 2020.

A report at end of 2019 that the Elland-based business expected orders in the fourth quarter to be significantly below originally predicted levels. It is now reporting more challenging trading conditions and a number of projects moving into the next financial year.

Referencing the General Motors strike in USA plants and the suspension of the manufacture of the 737 Max by Boeing, the firm states order numbers in both Machine Tools and Industrial Laser Systems have remained volatile.

As a result of the market volatility and the expected resultant shortfall in revenue against a relatively fixed cost base, the outturn for the full year is expected to be significantly below the Board’s previously revised expectations.

The Board continues to believe in the long-term fundamentals of 600 Group and remains optimistic for the future as it continues to pursue its strategy of de-risking and diversifying the business.