Raymarine warns in update

Updating the market on trading in the first half of its financial year, the company said that while sales for the first quarter were marginally up on the same period in 2007, Raymarine's overall sales in the first half were now expected only to be in line with those of last year. The company, whose products range from fish-finders to autopilots, is now coming to the end of its key selling period coinciding with the main boat sales and preparation period in the Northern hemisphere. US retail and dealer channels had continued to be weak, it said, and were not anticipated to meet expectations for the second half. Some European markets had also continued their slow start to the year whereas Australia and the emerging markets had shown good growth which was expected to continue for the full year. The Group, under CEO Malcolm Miller, was taking action to cut costs in all areas for this year and next. Looking ahead, Raymarine said it expected that sales for the full year were still likely to be ahead of 2007. Acquisitions and foreign exchange gains together with flat underlying sales in the UK and rest of the world region were anticipated to be partially offset by a decline in sales in the US. Earnings were likely to be at the lower end of market expectations and similar to those achieved last year.