17th Feb 2016 07:41
LONDON (Alliance News) - Industrial products manufacturer and distributor 600 Group PLC on Wednesday said conditions have remained tough in the second half of its financial year and it anticipates it will miss market expectations.
The company said market conditions have remained tough, with customers still hesitant to commit to orders. The weakness in the European market it saw in the first half has continued and has been accompanied by a softer US market, particularly in its machine tools unit.
600 Group said it has taken steps to cut costs to mitigate the problems and improve margins, with around GBP1.0 million in annual savings targeted.
However, these restructuring benefits and encouraging signs from sales and marketing initiatives it has launched will not offset the volume declines it has suffered, leaving the company set to miss market expectations for the full year to March.
By Sam Unsted; [email protected]; @SamUAtAlliance
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