British-based building materials supplier Heywood Williams, parent to distributor LaSalle Bristol, lost more than a quarter of its value Tuesday (Nov. 18) after the group warned year-end profits would miss expectations.
The Yorkshire Post reported that the company said it plans to cut costs by axing 300 staff – about 20% of its work force – by the end of the year. The job cuts will be split between North America, Europe, the U.K. and China.
Heywood, which supplies products ranging from windows to door handles, has seen its core markets collapse due to the “unprecedented impact of the credit crunch” on house building and home improvement.
The company also noted that the U.S. recreational vehicle market is in “major decline”, with September shipments to retailers down 43% from last year, with evidence of a further slump in sales and manufacturing cutbacks this year.
“Despite the substantial contribution of the mitigation initiatives the board now expects the outcome for the full year to be below current market expectation,” Heywood said in a statement.
To combat the slump, Heywood is implementing a “comprehensive self-help program,” focusing on generating cash, optimizing working capital and stock levels and increasing market share.