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Order slowdowns hit Marel's seafood division

Icelandic equipment manufacturer Marel blames 'soft orders' from seafood processors in the second half of 2018 for a slump in earnings.

Marel's fish processing equipment division suffered a slump in second quarter slump in earnings before interest and taxes (EBIT).

The Icelandic equipment manufacturer blamed "soft orders" from fish processors in the second half of 2018.

EBIT slid 79 percent to €800,000 ($893,369) from €3.8 million ($4.2 million) in the second quarter from a year earlier as revenue fell more than 21 percent to €35.2 million ($39.3 million) from €44.7 million ($49.9 million).

As part of its plan to invest in innovation, Marel this year launched the RobotBatcher to sort consumer products among various applications serving the farmed whitefish segment.

Overall Marel, which also manufactures meat and poultry processing equipment, saw second quarter EBIT adjusted for acquisitions rise 15 percent to €49.6 million ($55.4 million).

The company's revenue was 10 percent higher at €326.5 million ($364.4 million).

"Market conditions have been exceptionally favorable in recent years but are currently more challenging in light of geopolitical uncertainty," Marel said.

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