ANOTHER East Lancashire aerospace company is warning of uncertain prospects after heavy financial losses.

And the events of September 11 in New York are again being blamed for the uncertainty over its future.

Pendle Aeroform employ almost 250 workers between their two sites in Burnley and Colne.

In October, 60 people were made redundant at the Hargher Clough works and at their sister company, Cleveland Guest Engineering at Colne. At the two plants, parts are made for the aero industry -- an industry that has been blighted by a crisis of consumer confidence.

The speculation over the future of the company comes after they recorded a loss on the financial year of £7.9 million. That was despite a profit in the previous year of £1.4 million and turnover of £108.9 million for the group.

Commenting on the prospects of the company, chairman Roger Newton said: "Prospects in the short term are uncertain. We have, however, intensified our cost reduction programmes in order to protect us from any potential short-term order intake reductions.

"We are still a major force in our chosen core markets and are well placed to take advantage of opportunities as they arise.

"The policy of strategic partnerships with major world players and successful products should leave us in good stead for the medium and long-term."

The company have said that a number of new contracts for commercial and military companies, but "the impact of September 11 was still uncertain."

Rolls Royce in Barnoldswick, British Aerospace in Samlesbury and Airtours have all announced losses in the last two weeks, blaming the terrorist attacks on the twin towers of the World Trade Centre for a reversal in fortunes.