Icelandic equipment giant Marel issued a warning to investors on July 19 that its profit margins for the second quarter will be significantly weaker than expected.

The group added that, in an attempt to lower costs, it would be laying off five percent of its employees across the global workforce.

In the update, Marel said the preliminary results for the quarter showed a new record in orders received of €472 million ($483.1 million), and revenue of €397 million ($406.3 million).