Carr’s Group maintains expectations despite weaker agriculture performance
Carr’s Group has upheld its performance expectations for the full year, with a weaker showing from its agriculture business offset by strength in its engineering division.
In a trading update issued this morning, the Carlisle-based farming supplies firm said trading in its agriculture business had fallen behind expectations for the 18 weeks to 4 January.
Read more: Carr’s Group beats expectations despite unseasonable weather impact
It attributed this to mild weather in the UK leading to reduced spending on feed and animal supplements. In its US agriculture business, reduced cattle prices and a delayed start to winter feeding had dented demand for its products, Carr’s added.
Overall, the company now expects the full-year performance of its agriculture business to be “moderately behind” the board’s expectations.
“Despite a challenging start to the year in our agriculture division, due to a number of weather and market factors, we are confident in the medium-term prospects for agriculture,” said chief executive Tim Davies.
“These near-term challenges in agriculture are expected to be offset by a stronger than expected performance in our engineering business, where the order books remain strong, in addition to lower central costs,” he continued.
Although Carr’s had previously warned that contract phasing had subdued the performance of its engineering business at the start of the period, it said today that the strength of the pipeline had bolstered the division.
Carr’s now expects the full-year performance of its engineering division to be “slightly ahead” of board expectations.
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“Our investments in people, acquisitions and research, alongside our expanding international footprint, leave us well positioned for sustained growth,” said Davies.
Carr’s shares fell 3.23 per cent in morning trading.