Engineering group Titan Europe has seen its losses narrow after embarking on a major cost-cutting programme last year.
The Kidderminster-based firm recorded a pretax loss for the six months ended June 30 of £2.4 million compared with a loss of £11.4 million for the same period last year.
The AIM-listed firm designs and manufactures wheels, undercarriage components and assemblies for tracked and wheeled off-road vehicles for the construction, agricultural and mining industries.
Its customers have been hard hit by the global economic downturn, prompting Titan Europe to embark on a restructuring programme during the recession which saw it shed hundreds of jobs.
It said this, combined with its investment strategy, would help it benefit from improved outlooks in its global markets.
In a statement issued to the London Stock Exchange, the firm said: “In line with our global strategy, capital expenditure remains focused on key projects, such as the new undercarriage facility in China and the resizing of our western European manufacturing facilities to reflect geographic changes in volumes and product mix.
“As a result of its restructuring and investment strategy, the group has a demonstrable ability to benefit from increases in volume and the board believes the business is well placed to benefit from any further upturns in its markets.”
Titan said it expected volume to remain strong for the rest of 2010, compared to last year, and that its performance for the rest of the year would be in line with current market expectations.
In both the wheels and undercarriage divisions, the first half of 2010 showed an overall revenue increase of £17.7 million and trading profit increase of £7.4 million, compared with the same period in 2009, reflecting what the firm said was a progressive improvement in both sales volumes and margins.
Titan said it had made use of government-sponsored schemes which allowed it to temporarily lay off staff.