UK rental company Baldwins Industrial Services, already in the process of reviewing its operations and scaling back its fleet, has revised its earnings estimates for last year after losing more than anticipated on its US subsidiary Phillips Crane & Rigging.

Baldwins expects to break even at the operating level for the year to 31 March 2001, making an operating profit of £4.8m ($7.3m) in the UK but an operating loss of £4.8m in the USA.

The loss after financing but before disposal of fixed assets, exceptional items and tax will be approximately £6.0m for the year ended 31st March 2002.

Exceptional items of about £5.5m include an impairment review of the crane fleet resulting in a charge to profit of around £3.4m, an impairment review of the value of goodwill in the US subsidiary balance sheet, resulting in a charge of around £0.6m and an accrual for possible costs relating to the finalisation of positions with equipment manufacturers of £1.5m.

On top of this, interest is expected to be approximately £6.0m and the loss on disposal of fixed assets is expected to be approximately £2.9m.

Baldwins had announcd on 16 May that it expected an operating loss of £3.4m from Phillips but this figure had to be adjusted to take account of bad or doubtful debts and costs relating to ongoing contracts.

Discussions with its financiers regarding the future financial structure of the business are at an advanced stage, the company said. Further details of the restructuring are expected to be released with the preliminary statement of results for the year ended 31 March 2002, which is expected to be released next month.