British advanced materials group Morgan Crucible Co Plc said it expected full-year results to be significantly below its previous forecast as conditions had worsened across most of its markets in the third quarter,particularly in Europe and China.
The company,which provides carbon technology services for the aerospace and space exploration industries,said it had initiated cost cuts and that it expected to incur 15 million pounds ($24.06 million) in related one-off charges.
The company also said it expected weak demand to continue during the rest of the year,based on the order intake in the third quarter. Morgan Crucible said the slowdown in demand had been more pronounced in the advanced materials and technology (AM&T) business.
Demand was more resilient in the ceramics and molten metal systems businesses,which account for more than 70 percent of the group’s revenue,the company said. Morgan Crucible’s shares closed at 255.80 pence on the London Stock Exchange on Thursday. They have fallen about 8 percent since the start of the year.