Danish-based DLH Group has issued a profits warning in advance of its second quarter results.
The company, which has hardwood and softwood/panels divisions, issued a statement saying it expected a 10% decrease in revenue for its second quarter and a breakeven before tax.
“The revenue forecast for the year is reduced by DKr0.3bn to DKr5.3bn, with profits on continuing operations before tax reduced from DKr100m to about zero,” it said.
DLH said the global economic slowdown had spread to a number of its markets in the second quarter.
“The consequence of this development is partly a considerable fall in prices of large parts of the product range and partly reduced sales. The forest concessions and production companies of the group are affected relatively harder, because there, the lower prices have a stronger influence on the operating profit.
“Furthermore, in the short term it is difficult to adjust the capacity to the lower demand.”
But DLH said demand was holding up in parts of eastern Europe, the Middle East and the Far East.
