Buyout group Melrose today warned of a slowdown in its businesses, which sent its shares tumbling.
The FTSE 100 firm – which caters to the energy, oil and gas, mining and manufacturing industries – said that the sales outlook for next year had become more “uncertain”.
Melrose said that over the past few weeks, it had seen “slower trends” from certain businesses compared to the first half of the year.
The company also noted that prospects for German meter maker Elster – acquired earlier this year for $2.3bn (£1.45bn) – had been affected by lower-than-expected demand.
“We have already made significant changes to Elster, and identified larger than expected cost savings,” Melrose said today, adding that a restructuring announced by Elster at the beginning of the year was on track.
Melrose stock had dropped more than 11 per cent in afternoon trading.