UPDATE 2-London taxi maker Manganese warns on losses

* Sees full-year outcome below expectations

* Says consulting staff over redundancies

* Shares fall almost 20 pct

(Adds analysts, details, background, shares)

By Julie Crust and Sharon Lindores

LONDON, Sept 30 (Reuters) - Manganese Bronze Holdings (MNGS.L), maker of London's trademark taxi cabs, issued a profit warning on Wednesday, and said job losses were likely as part of a restructuring of its loss-making British operations.

Manganese Bronze shares fell nearly 20 percent on the news, which came a day after Eco City Vehicles Plc (ECV.L), which sells and services taxicabs, reported a narrower operating loss along with an upbeat outlook due to growing sales.

Manganese Bronze said: "Overall, while group operating performance is expected to show year-on-year improvement, the outcome for the full year is expected to be a loss below current market expectations."

Nigel Harrison, an analyst with Edison, said he is now looking for a Manganese Bronze loss of about 5 million pounds ($8.1 million) compared with his previous estimate of 2 million pounds.

Manganese Bronze is starting formal consultation with its workforce and others to examine ways of returning its UK operation to profitability, the company said, adding there could be a number of redundancies.

On Tuesday, Eco City Vehicles Plc (ECV) announced an operating loss before tax of 100,000 pounds compared with 700,000 pounds in 2008.

"The results reflect rising demand for the ECV-developed new Mercedes-Benz taxi, which is rapidly gaining market share and has firmly established itself as the latest incarnation of one of London's most widely recognised icons," Peter DaCosta, chief executive of Eco City, said.

"We are now actively considering stepping-up production of the Vito taxi at our Coventry site over the next few months," DaCosta said, adding the board is optimistic about the second half.

Edison's Harrison said: "The market itself is very tough and Manganese Bronze has got a competitor in Mercedes [MERCBZ.UL] at the moment which has taken 25 percent of their market."

Separately on Wednesday, British commercial electric vehicles maker Tanfield Group (TAN.L), which is making the first 10 electric taxis for Manganese Bronze, reported an operating loss of 11 million pounds for the first half to the end of June. [ID:nBNG441218]

Xavier Gunner, an analyst with Arbuthnot, said the losses at Tanfield Group, the AIM-listed maker of aerial lifts and commercial electric vehicles, were mainly due to its aerial lift business, a sector which is depressed globally.

Shares in Tanfield Group fell 13 percent to 49.7 pence per share and shares in Manganese Bronze were down 11.9 percent at 170 pence at 1239 GMT.

Shares in Eco City were unchanged at 3.4 pence per share.

($1=.6207 Pound)

(Editing by Paul Hoskins and Simon Jessop)