Foundry warns on profits but looks to improvments

The company, which was founded in 1890, had reported in November that the first two months of its second half year had seen a sharp deterioration. At the time, customers told Chamberlin that following a period of very low demand caused by de-stocking, demand could be expected to recover somewhat to give a reduced but stable level. However, Chamberlin said in its trading update today, de-stocking was continuing and demand remained at low levels, especially in the automotive and construction equipment sectors. As a result, it expected its financial results for the year to be below market expectations. The company said it continued to win new business despite the downturn and had secured orders from an additional turbocharger manufacturer and from a number of customers in other areas including rail and defence equipment. Cost reductions had now been fully implemented across the group and Chamberlin was looking forward to reporting an improving performance during the course of 2009/10.