Molins Warns of Order Shortfall

Source from:  Tobacco Reporter 06/24/2010

Molins has said that it is expecting to have to reorganize some of its operations because of lower-than-expected activity this financial year. In a trading update issued ahead of its interim results announcement in August 2010, Molins said that order intake remained behind that of the comparable period of last year. "Until now the shortfall had been in respect of orders which were expected in the current year," it said. "However, the board is now aware that some of those prospective orders are unlikely to be received, and others have been further delayed, such that current year sales are now expected to be lower than the board's previous expectations." "Additionally, in the first half, a sales contract being undertaken within the Packaging Machinery division, which commenced in 2009 and proved more technically challenging than expected, has incurred significant further costs which will not be recovered." "As a result the board's current expectation of Group underlying performance in the full year is lower than previously. In addition, it is expected that some reorganisation will take place in a number of locations as a consequence of the lower activity." Enditem