Shares in Coats Group PLC (LON:COA) dropped after the industrial thread producer said slower sales performance will result in full-year adjusted operating profit falling in the range of US$196mln to US$201mln.
It would mark a small increase from last year’s US$195mln.
In the four months to October, group sales were flat, reflecting “slightly lower activity” in apparel and footwear and performance material, which compared to a “strong” increase recorded in 2018.
The company, which is the second-largest manufacturer of zips and fasteners in the world, said it continues to focus on customer service and building digital capabilities.
House broker Peel Hunt cut its full-year profit before tax forecast by 3% to US$1.3bn and so trimmed the target price to 90p from 100p, but keeping its ‘buy’ recommendation.
“Clearly the background market has slowed through the year, however underlying earnings are still expected to show a marginal improvement on prior year,” analysts said in a note.
Shares dropped 11% to 65.48p on Friday morning.