Sunnier times ahead for manufacturers
Heavy industry's jobs cull is coming to an end as engineering and manufacturing firms' half-year results hint at better times ahead.
Positive outlook: The largest firms claim the worst may be over
Yesterday ceramics firm Cookson (up 22.4p at 365.1p) said the worst is over for reducing its headcount. It has already axed 2,900 staff across the globe since last September, with 300 more to go by the end of the year.
Despite a loss for the first half of the year of £3.3m, chief executive Nick Salmon said sales improved in the second quarter of the year. It will pay no interim dividend.
Car parts and engineering firm GKN (up 8.5p at 113.7p) has already scaled back staff by 2,500. It announced yesterday another round of cuts but not as severe - 1,100 jobs will go between now and the middle of 2010 with just over 200 expected to be in the UK.
Losses for the first six months of the year hit £16m, compared with a £118m profit for the same period in 2008, as it scrapped its interim dividend.
GKN said its aviation division was 'holding up this year and for 2010 because of the backlog of orders for commercial aircraft'.
The optimism comes off the back of upbeat figures from the Chartered Institute of Purchasing and Supply - a bellwether for the industry - which shows that manufacturing activity grew last month for the first time since March 2008.
Weir (up 38.5p at 620p), which supplies pumps for the mining, oil and gas sectors, said it was also turning the corner after seeing profits rise 12 % to £91.4m for the half year. It expects no more job losses on top of 450 already cut.
Chief executive Mark Selway said: 'While it's the very early days of a recovery the inquiry levels we are now seeing for large capital projects is positive'. Weir increased the dividend 3% to 4.8p a share.
Plane parts supplier Meggitt (up 1.2p to 191.2p) was also in an upbeat mood. It has already cut 750 jobs this year and hopes it can keep further losses below 200.
Half-year profits were up 32% to £110.1m while it held its dividend at 2.7p a share.
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