Shares in crane hire company Baldwins Industrial Services surrendered 9.5p to 27.5p in early dealings after it warned on profits for the second time this financial year. Broker ING Barings now expects the company to post extensive losses. James Crux reports

House broker ING Barings dramatically widened its forecast losses by £4 million, from £500,000 to £4.5 million today, following yet another profit warning from the Berkshire-based outfit. Analyst Jonathan Timms explained that £800,000 worth of the downgrade related to poor trading, with 'the lion's share, some £3.2 million, being the costs of downsizing'.

In today's update, Baldwins' (BLD) directors warned results for the current year to March will 'materially' miss expectations on account of ongoing poor UK trading, rising operating costs in North America and expenses relating to the reorganisation of the group and its funding.

Though trading at its Delta, Loadtite and M&E Handling Services divisions has been in line with management forecasts, chairman and chief executive Richard Baldwin said sales in the UK crane division would be below expectations on falling utilisation levels. He also explained that although North American sales are in line with forecasts, earnings in the region have fallen on 'higher direct labour costs'.

The figures will also be hit by several one-offs, including £1 million of costs relating to the liquidation of Independent Insurance Group, US and UK restructuring costs, and professional fees relating to the reorganisation of its funding arrangements. Baldwins also flagged up likely losses on the sale of a number of non-performing cranes as part of the restructuring programme.

Back in October 2001, the group's shares halved to 67.5p following a warning. In December, the interim figures to 30 September disappointed the market further, with pre-tax profits collapsing from £2.5 million to £500,000 on sales up 18 per cent at £41.3 million. The shares currently trade just 1p off the 26.5p 52-week low, against a 186p high.