Birmingham-based automotives group Widney saw shares plunge after it announced a fall in demand from a number of its key customers.
The Aston company also said that results for the year ended September 30 were likely to fall below market expectations and show a small loss.
Investors reacted badly and shares closed down 35 per cent at 6.5p.
In its trading update, the company said: “Following a fall in demand from a number of the group’s key customers the results for the year ended September 30, 2008 are expected to fall below market expectations and show a small loss.
“Orders reduced as expected at the time of key customers normal seasonal slowdown over the summer.”
“This expected decline was exacerbated by extended shutdowns and lower than expected schedules from some of the group’s key customers,” it added.
In outlook, the company said: “To date the expected improvement in demand has not occurred and the group has little visibility on orders beyond December 31, 2008.
“The group is actively managing its costs to bring them in to line with the current level of demand.”
Widney designs and manufactures window systems for specialist vehicles and telescopic slides. Widney Pressings produces pressed components and metal assemblies for the automotive original equipment and after-market sectors.
The company has been associated with the electronics, general industrial products and vehicle glazing products sectors for more than 50 years.
Its customer base includes many blue chip companies and the firm has invested in machinery to make it one of the most modern and specialist manufacturing plants in Europe. Nevertheless its exposure to difficult markets, especially the automotive industry has posed it problems and in common with many manufacturers it is facing severe difficulties.
The announcement adds to the gloom surrounding manufacturing in the region. CIPS data yesterday showed that the sector is at its lowest ebb for almost 17 years.
