Peter Warren Automotive (ASX:PWR) expects underlying profit before tax in the range of AU$6 million to AU$8 million in the fiscal first half ending Dec. 31, according to a Thursday filing with the Australian bourse.

The forecast reflects external factors such as Australia's over-supply of new vehicles, reduced margins across the industry, and lower demand for new vehicles, the filing said.

The company is pursuing cost-reduction initiatives across external expenditure, internal resources, and underperforming locations to improve performance, according to the filing.