Hardide’s markets soften

The Bicester, Oxon-based company said it had recently held discussions with a number of UK and US customers to ascertain the effects of the current global economic outlook on their production and resultant demand for Hardide's product. A number of Hardide's customers' markets, particularly in the oil and gas, automotive and construction industries, had softened to an extent that was likely to result in decreased orders for Hardide's product and lead to results in the current financial year being below current market expectations, the statement said. The Group was seeking firmer forecasts from these customers and a further announcement will be made when these are available in sufficient detail. This is expected to be in February 2009. Hardide said it was important to note that there has been no reduction in sales as a result of customer dissatisfaction with Hardide or its coating technology. Results from recent new application development projects give the Board reason for optimism about longer term product sales in new markets, as well as continued growth in current markets. The Group met its first quarter forecast for the financial year ended 30 September 2009. Commenting on the announcement, CEO Graham Hine said: "We are facing a situation that is common to many manufacturing and engineering companies at present, and we will now need to take steps to deal with the reduction in sales. We continue to make encouraging progress in developing applications for Hardide both in current and new markets."