26th Feb 2016 09:46
LONDON (Alliance News) - Power and data cabling provider Volex PLC on Friday said weak demand has continued into the second half and its revenue will miss expectations for its financial year to April 3.
The company said demand had been slow in the first half, and this continued into the second half, exacerbated by lower-than-anticipated orders from a key customer for both existing and new products.
It now expects full-year revenue will be USD360 million to USD370 million, down from USD423.4 million the year before, as this demand accompanied by competitive conditions in its Asian power cord business, which have only been partially offset by good trading in its North American healthcare unit.
The group is seeking to cut costs across the business to cope with the tough environment, but expects its underlying operating profit, before one-offs, will fall to USD4.0 million to USD5.0 million from USD8.8 million in financial 2015.
Volex shares were down 11% on the news to 40.06 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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