Morgan Advanced Materials warns earnings will be at lower end of expectations

Shares in Morgan Advanced Materials slumped early on Thursday, after the carbon products and ceramic manufacturer warned its full year earnings will be at the low end of expectations, due to a challenging market environment.

The group said trading conditions have weakened in the second half of 2015, with sluggish demand in China and North America affecting the group’s overall order book, which was 5.3% lower year-on-year at the end of October compared with the 5.7% increase at the end of June.

As a consequence of the decline, Morgan said it expects revenue for the second half to be approximately 7% lower than in the first six months of the year and its earnings before interest, taxation and amortisation, prior to restructuring and one-offs, will be at the low end of expectations.

Morgan Advanced Materials were down 11.83% to 237.50p at 0923 GMT on Thursday.