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Low & Bonar reports drop in civil engineering segment

Recognising the lower demand in the civil engineering sector, the company now expects profits for this year to be between £25.3 million and £26.5 million.

8th September 2014

Innovation in Textiles
 |  London

Industrial, Civil Engineering

Since reporting results on 10 July 2014, the Low & Bonar Group has experienced a drop in demand across its European civil engineering markets, a segment, which represents approximately a quarter of the Group’s sales.

This reflected a slowdown in construction activity and the continuing difficult economic and geopolitical climate in Europe, the company reports.

Civil engineering

Civil engineering sales grew by 4% in the first half on a like for like basis. However, taking the reduction experienced in the third quarter into account, the Group anticipates sales in this sector to be flat for the year as a whole.

Whilst a material improvement is not expected for the remainder of the year, the Group believes that the strong fundamentals of this sector remain in place.

Separately, as outlined in July, the Group’s civil engineering joint venture in Saudi Arabia has continued to suffer a slower than expected order intake as a result of a delay in obtaining a key product certification. A loss of at least £1 million is now anticipated for 2014.

Low & Bonar

The Group’s other businesses continue to perform well and are in line with the Board’s expectations. However, recognising the lower demand in the civil engineering sector, the Board anticipates that profit before tax, amortisation and non-recurring items for this year will be in a range between £25.3 million (last year’s result) and £26.5 million.

Low & Bonar is a leader in performance materials, manufacturing and supplying a wide range of products to the performance materials industry. It is a global business, supplying yarns, fabrics and fibres to a broad range of end markets including civil engineering, building products, transport, sports and leisure, agriculture and other industrial applications.

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