Shares of Carlisle-based agriculture and engineering firm Carr’s Group fell about 30% on Thursday, March 12, after it said in a trading update it expects performance for the current financial year “to be significantly below its expectations.”
Carr’s said: “Since the last trading update on 7 January 2020, conditions in both UK and US agricultural markets have remained challenging which, combined with the continued mild weather, has meant that volumes and margins for feed and supplements are significantly behind management’s expectations.
“Cost control measures implemented in the first half have only partially mitigated this adverse impact …
“As previously reported, engineering started the year slowly, but the strength of the new order pipeline, particularly in global robotics, had been expected to more than offset this over the remaining three quarters.
“Since January 2020, delays in receiving expected orders destined primarily for Japan and China now mean that this will not be the case …
“As a result of the continuing challenging agricultural environment, both in the UK and overseas, together with a delay to engineering contracts in Asia, the board anticipates the group’s performance for the current financial year to be significantly below its expectations.
“The board is mindful of the significant uncertainty which remains in agricultural markets.
“It is, therefore, in the process of implementing further cost reduction measures which should better position both divisions beyond the current financial year.”