SPECIALIST crane hire firm Baldwins Industrial blamed tough UK markets and the cost of moving equipment to the US for a 28 per cent fall in half-year profits.

Baldwins, which employs 50 staff at its Middlesbrough site, issued a profits warning in September, saying UK revenues were running 10 per cent below expectations.

The statement two months ago caused shares to fall 36 per cent, and it followed that with yesterday's announcement as chairman and chief executive Richard Baldwin said the results were in line with the earlier warning.

The tough UK market prompted Baldwins, based in Berkshire, to move cranes to the US and Venezuela, a decision that had also impacted on profits while the equipment was in transit.

Pre-tax profits in the six months to September 30 fell to £2.5m, against £4.5m at the same point last year. Turnover rose to £34.9m, against £27.9m last time.

Mr Baldwin said: ''Our UK business remains difficult but the directors believe that the actions they have taken to improve its operating performance will show through in the second half.''

A number of under-performing depots had been closed in the period, including ones in Immingham, Cardiff and Southampton.

On the positive side Baldwins' international business had also increased significantly, with turnover up 600 per cent to £11m, compared with £1.8m last time round.

The overseas operation was boosted by the acquisition last year of US firm Phillips Cranes and Rigging and the concentration on winning contracts in US dollar markets.

Baldwins had also won a number of significant long-term contracts.