Volex Group has warned that sales for the year to end-March 2003 will be some 10 per cent below current market expectations.
The electronic cable assemblies and electrical power cords producer, which employs 250 in Co Mayo, also said it expects to achieve a small operating profit for the year, before goodwill amortisation.
The company - which employed more than 800 people two years ago - has let go more than two-thirds of its work force due to difficult market conditions. The company had been one of the largest employers in the region.
It said it has obtained new business in the second half year, particularly in Eastern Europe and Asia, but this has not offset the continued and greater-than-expected underlying decline in the group's traditional markets, particularly in the telecommunications and data markets.
Although order books have continued to strengthen during the last quarter, the group said the translation into firm customer delivery schedules has lagged behind expectations.
The group also said it anticipates a positive cash flow in the second half year with net debt at the year end in the region of £42 million sterling, subject to no further material exchange rate changes, compared with £50.4 million at last year end and £46.6 million at the half year end.