Hutchinson says fiscal first-quarter profit to exceed forecast
Published Jan 9 2002
Bloomberg News
HUTCHINSON, MINN. -- Hutchinson Technology Inc., a
maker of parts used in computer disk drives, said it had a fiscal
first-quarter profit that beats forecasts because of cost cuts.
Shares rose 11 percent.
The company expects to report profit for the quarter ended
Dec. 30 of 8 to 13 cents a share, based on preliminary results,
said spokeswoman Darlene Polzin. The average analyst
estimate was 2 cents a share, according to a poll by Thomson
Financial/First Corp. Sales are expected to be about $93
million, in line with First Call estimates.
Hutchinson makes arm-suspension assemblies that hold the
heads that read and write data in computer disk drives. In
August, the company said it will fire as many as 600 employees,
or 15 percent of its work force, to cut costs.
"Our team has done an outstanding job of resizing the
company to operate profitably at current levels of demand,"
Wayne Fortun, president and chief executive, said in a
prepared statement. The company said it will report full results
Jan. 22.
Including a one-time gain of $2.6 million, or 8 cents a share,
from insurance proceeds in connection with litigation costs and
related matters, the company expects to report profit of 16 to
21 cents per share. Polzin declined to comment about the
nature of the litigation, but the company has been embroiled in
a patent-infringment battle with Singapore-based
Magnecomp International. The companies signed a
cross-licensing agreement a month ago.
Hutchinsonshares fell 17 cents to $24.24 in regular trading
before the revised forecast. They reached $27 after the
announcement and have gained 49 percent in the past year.
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