Rubicon cuts costs after profits warning

Rationalisation, including job losses, have been put in place to stem the fall in Rubicon shares. This followed a profits warning over a smaller demand for engine parts for the Ford Escort. The shares have perked up after a confident message on next year’s trading and future dividends in the interim statement. The firm’s board […]

Rationalisation, including job losses, have been put in place to stem the fall in Rubicon shares.

This followed a profits warning over a smaller demand for engine parts for the Ford Escort.

The shares have perked up after a confident message on next year’s trading and future dividends in the interim statement.

The firm’s board believes rationalisation – including some 300 job losses – will improve 1997-98 earnings and that a `progressive’ dividend policy will continue.

That decided brokers Williams de Broe to tweak up its final dividend estimate for this year (the interim was unchanged) to a total 6.3p against 6p.

The profits warning was down to a shortfall in the expected take-up by Ford of engine parts for the Escort, and falling orders from IBM for computer casings.