Taxi maker Manganese warns on losses

Wed 30 Sep, 2009 07:22

LONDON (Reuters) - Manganese Bronze Holdings (MNGS.L), maker of London's trademark taxi cabs, issued a profit warning on Wednesday and said job losses were likely as part of a restructuring of its loss-making British operations.

"Overall, while group operating performance is expected to show year on year improvement, the outcome for the full year is expected to be a loss below current market expectations," it said.

It is starting formal consultation with its workforce and others to examine ways of returning its UK operation to profitability, the company said in a statement.

"The consultation will be wide ranging and will review all options including rationalisation of the current manufacturing operations which could result in a number of redundancies," it said.

Manganese said trading in the UK continued to be negatively impacted by the recession and that lower volumes with high discounts and marketing initiatives had resulted in continuing losses.

Overall vehicle sales for the eight months to end August fell 9.1 percent to 1,207 vehicles.

"The manufacturing breakeven level continues to be approximately 2,000 vehicles per annum," it said, adding that UK sales are expected to remain below that level.

Shares in the company were down 18.7 percent at 157 pence by 8:15 a.m and at their lowest level since late May.

(Reporting by Julie Crust; editing by Paul Hoskins)