Titan Europe, the maker of steel wheels and other machinery components, says it will face 'substantial' short-term costs in restoring its Finale Emilia factory in Northern Italy after an earthquake, while demand in China is weak.
The Italian facility was seriously damaged by an earthquake in May, which has forced Titan to move production to other factories in France and Turkey. Finale Emilia was responsible for around 10% or £50m worth of sales
The company is also under pressure in China, where many of its products are used in equipment manufacture. Titan warns demand remains "very low" and despite brighter performances from the UK, North America and Australia, the market is clearly worried about the firm's near term prospects.
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At 09:50, the stock was down 9.66% at 98.25p.
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