Mayflower Corporation, Britain's largest bus builder, has no plans to axe jobs at its Belfast plant as part of a drive to realign costs due to falling profits and market demand, writes Francess McDonnell.
The engineering group, which also manufacturers bodies for cars and fire engines, has already shed 500 jobs at its Scarborough factory in the UK and merged its three bus firms into one operation as part of a cost reduction programme.
Mayflower, whose non-executive directors include the former British Prime Minister Mr John Major, has posted a 33 per cent fall in pre-tax profits for the first half of this year to £20.1 million sterling.
Mr John Simpson, Mayflower chief executive, blamed the global economic slowdown and falling demand from its core businesses for the slump in the group's performance. "The first half of the year has undoubtedly been tough and, as previously anticipated, sales and profits were reduced across all businesses. Although the outlook remains difficult we expect to deliver a satisfactory result for the year as a whole," Mr Simpson said.
Its Belfast division, formerly known as Walter Alexander, employs more than 200 people.
It was merged last year with Mayflower's British bus and coach businesses, Dennis and Plaxton to create TransBus.
According to Mayflower's latest results, registrations of new buses and coaches in the UK fell by 20 per cent in the first six months to June and the group has warned that there is unlikely to be any recovery in the second half of the year.
The group has said it will now focus on expanding into Europe in a bid to sustain its bus business. Mayflower has identified the Republic, Spain and the Netherlands as key growth markets.
