22nd Jan 2014 10:23
LONDON (Alliance News) - Shares in Carclo PLC dropped 37% Wednesday after it lowered its profitability forecast for the second half, due to lower than expected sales at its Conducive Inkjet Technology division.
The technical plastic products company said that in its CIT division, sales of coated film in the second half would be ahead of the first, but below its previous estimates. This is due to a slower than anticipated ramp up in production on programmes using its XSense touch sensors.
Carclo said the lower sales will reduce the forecast profitability of CIT and of Carclo as a whole in the second half.
Carclo said that further programmes are expected to come through in the first half of 2014, and that its partner Atmel Corp had recently begun its first production roll-out for the HP Omni 10 tablet, which uses XSense.
Increased competition in the market for touch sensors have caused price pressure, which Carclo said would likely reduce coated film revenues and margins from its previous estimates. Carclo reiterated its confidence in XSense, saying it was confident it can gain a significant market share.
The company's Technical Plastics, LED Technologies and Precision Engineering businesses are performing in line with expectations, Carclo said.
Shares in Carclo were trading down 37% at 167.88 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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