Kidderminster-based wheelmaker Titan Europe today revealed a loss for the first six months of this year, despite axing hundreds of workers.

Even though it has made dramatic cuts, a worldwide drop in sales means the company says it has made a loss in the first half of this year and bosses are warning that there are only signs of ‘small improvements’ towards the end of this year.

The company has previously revealed the loss of nearly 100 full-time and agency jobs at its Cookley plant, near Kidderminster, but has now told investors it has cut its 2,800-strong global workforce by 35 per cent over the past year.

Based at Cookley, Titan has factories in Europe, Australia, South America, India and China making steel wheels and undercarriages for construction, mining and agricultural vehicles.

As part of its cost cutting Titan said it had made: “full use of Government supported temporary headcount reductions, primarily in Italy.”

Since last year Titan has been hammered by the slump in the global building industry due to the recession.

In the first half of its current financial year it expects it construction sales to be down by a half, while its agricultural and mining markets will be down by 25-30 per cent.

As a result, Titan’s income will be down by 35 per cent and it expects to make a loss in the first six months of this year.

However, the company has renegotiated its bank facilities in recent months to support its long term plans and said talks over future business with its key customers “are generally positive”. “There are also signs of small improvements in order books in the later months of the current year,” said the company in a statement to the City.

Despite its first half loss, Titan said it expecting its trading performance for the current year remain in line with market forecasts.