James Latham sees full year 2009 profit lower than expectations

Mar 02, 2009. /Lesprom Network/. James Latham Plc, a distributor of wood-based panel products, expects profits for the full year ending March 31 to be lower than estimates, as the RTT News informed Lesprom Network. However, the company still anticipates annual revenue to be broadly in line with market expectations. The group pointed that the financial markets turmoil has had a sudden and wide-ranging impact on consumer confidence, particularly in the construction and transport markets. The company also noted that the margins on commodity items, like hardwood and coniferous plywood, have come down sharply in the current year, as competitors seek to turn surplus stock into cash and purchase prices continue to fall. Latham also said its new Scottish branch continues to build revenue, however would not turn to profit in the year, and added that it has implemented cost reduction measures in view of the worsening trading conditions.