LONDON (ShareCast) - Shares in Wagon dropped after the automotive components firm said full year profits will be lower and warned that 2008/09 financial year will also be hampered by a number of factors.
Reported pre-tax profits for the year to March 2008 will be impacted by the acquisition of automotive structures producer ISE, but it said volumes, revenue and operating performance have remained broadly in line with expectations.
Order intake in the year is expected to be around 30% above last year and it expects the ‘strong’ order intake will contribute from the 2009/10 financial year and onwards.
“In the 2008/09 financial year, however, changes in OEM schedules and model changeovers, together with general expectations of lower market demand are expected to materially impact volumes, revenues and margin,” said the group.
It also said that its largely euro-denominated debt remains above expectations, with additional impacts coming from exchange rate factors and the acquisition.
“The board continues to pursue several options to improve the Group's debt position,” it added.
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