British engineering and electronics firm Invensys is to cut another 2,500 jobs worldwide because of the continuing economic slowdown, the company said today.
It also warned first-half operating profits would be about 20 per cent below market expectations after the worst US industrial recession since the 1970s.
The company said that in response to the very poor trading conditions it had now raised the number of jobs to be shed this year to 6,000 from the 3,500 it had announced in May.
Shares in the group, which have underperformed the electronics and electricals sector by almost 5 per cent in the past 12 months, tumbled to their lowest level in nine years to stand 19 pence lower at 83p on the London market.
When announcing its full year results in May, the group had said it expected to report a first-half operating profit before exceptionals of about £400 million sterling ($569 million). It now expected that figure would be some 30 per cent below its initial expectations.
Trading in the first three months of the year to March 31st, 2002, had been tougher than expected and conditions were continuing to deteriorate .
Invensys, which said the European economy was also weakening rapidly, said it was too early to give any guidance on prospects for the second half, given very volatile markets.