UPDATE 1-Titan Europe 2008 trading profit falls 2.2 pct
* Wheels division to be hit in 2009
* Continues to scale back operations
* 2008 profit hurt by margin reductions, downturn (Adds details)
May 22 (Reuters) -British wheelmaker Titan Europe Plc (TSW.L) reported a 2.2 percent fall in 2008 trading profit due to margin reductions and the economic downturn, and it reiterated that it had reduced its 2009 forecast sales volume to 30 percent below that of 2008.
Titan Europe said it expected its undercarriage division to see a considerable levelling out in 2009, after it was hit last year by timing in market conditions, material pricing and product price recovery.
"Unfortunately in 2009, it will be the wheels division that will feel the impact of reduced volumes," the company said in a statement.
The company also said it was continuing its programme of scaling back material inputs, manufacturing, people and investment plans in order to realign its cost base to reflect the more challenging markets it faces.
The company reported a group trading profit of 31.2 million pounds compared with 31.9 million pounds a year ago. Revenue rose 17.2 percent to 452.3 million pounds.
Shares of the company closed at 23.5 pence on Thursday on the London Stock Exchange. (Reporting by Ramkumar in Bangalore; Editing by Mike Miller)
