LONDON (Alliance News) - Low & Bonar PLC Wednesday said it is continuing to face a difficult trading environment in Europe which is impacting its civil engineering business, but said it expects earnings for the financial year to end November to be in line with market forecasts on a constant currency basis.
The performance materials group said the fall in demand for its civil engineering business in Europe reported in its last update in September has continued. It said it was being impacted by the difficult economic conditions in continental Europe, including a slowdown in landfill projects in Germany and the ongoing geopolitical tensions in eastern Europe.
It said civil engineering sales are expected to fall 7% on a like-for-like basis in the second half on the back of the problems in Europe and will fall 2% for the full year.
It said it is still seeking key product certification for its civil engineering joint venture in Saudi Arabia.
Low & Bonar said it expects its profit before tax, amortisation and non-recurring items for the year to be ahead on a constant currency basis at GBP25.3 million to GBP26 million, in line with market expectations.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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