Technitrol slashes Q2 expectations

Posted: July 02, 2008

Shares in Technitrol Inc., a Trevose electronic components manufacturer, fell almost 12 percent early today after it slashed its expectations for second-quarter operating profit to $12 million from $25 million.

The company blamed worsening conditions in the North American economy, the impact of the May earthquake in China on an electronics components factory, higher-than-anticipated costs to move certain operations to Asia, and the strengthening of local currencies against the dollar.

The company also said it expected to report quarterly revenues of $320 million, down from its April prediction of $330 million.

Technitrol, which also manufactures electrical contacts and assemblies, said it will rigorously reduce costs and predicted that third-quarter operating profit would be 75 percent higher than in the second quarter. That would be $21 million.

Company shares were priced at $14.83 in early afternoon trading on the New York Stock Exchange, down $1.94 (11.57 percent).

comments powered by Disqus
|
|
|
|
|