Autologic – First Half Prelims.

LONDON (AFX) – Autologic Holdings PLC said its first-half pretax profit is
expected to be broadly in line with market forecasts but warned full-year
results could come in significantly below current expectations if difficult
market conditions continue into the second half.
Some of the restructuring costs expected in the first half will now be
incurred in the second half.
In a pre-close update ahead of the release of its first-half results,
Autologic said market conditions in the vehicle logistics sector across Europe
have significantly deteriorated in the second quarter with some of the largest
markets for the group experiencing particularly weak volumes.
France and Benelux have been particularly hit hard by the downturn, with
cumulative year-on-year decreases in group volumes in these countries for the
first half year of up to 17.5 pct and 22.7 pct, respectively. France has also
been compounded by a series of national strikes.
Following a strategy review of its property portfolio in 2002, the group
agreed to sell a number of operational sites in France for about 28 mln stg in
cash and the proceeds will be used to reduce debt. These sites will be leased
back on normal commercial leases and the sale will have no impact of the group’s
first-half profits, it said.
Further disposals are expected later in the year.
Autologic said some of its major customers have suffered the greatest falls
in volumes with year on year reductions for April and May in its key markets of
over 20 pct. In the UK, volumes fell 5.6 pct in April and May as it experiences
significant UK volume volatility.
The company will publish its interim results on Aug 20.