METHA warns re: Q3
CHICAGO, Feb 1, 2001 /PRNewswire via COMTEX/ -- Methode Electronics, Inc. (Nasdaq: METHA chart, msgs) said a preliminary estimate for the third quarter indicates that earnings will decline approximately ten percent from the level a year ago. In the third quarter FY2000 Methode reported fully diluted operating earnings of $0.21 per share or $7.3 million.
Executive Vice President and Chief Financial Officer Dale W. Phillips said, "We are seeing softness across most of our product lines within our electronic segment, with the most significant reductions being in automotive electronic controls. As a result, Methode has embarked on a plan of cost reduction, targeting ten percent of total operating cost. These cost reductions include the elimination of approximately 120 salaried and hourly non-production positions and lay-offs of up to 500 hourly production employees. Charges incurred because of the employment reductions have not been quantified, but are not expected to be material."
Excluding its Stratos Lightwave, Inc. (Nasdaq: STLW chart, msgs) subsidiary, Methode Electronics, Inc., employs approximately 3,350 full-time and 350 temporary employees in 19 plants worldwide, and manufactures component devices for Original Equipment Manufacturers (OEMs) of information processing and networking equipment, voice and data communications systems, consumer electronics, automobiles, aerospace vehicles and industrial equipment. Products employ electrical and electronic technologies in communication data links, interconnections and controls.
Certain statements in this press release are forward-looking statements that are subject to certain risks and uncertainties. The Company's results will be subject to many of the same risks that apply to the automotive, computer and telecommunications industries, such as general economic conditions, interest rates, consumer spending patterns and technological change. Other factors which may result in materially different results for future periods include market growth; operating costs; currency exchange rates and devaluations; delays in development, production and marketing of new products; and other factors set forth from time to time in the Company's Form 10-K and other reports filed with the Securities and Exchange Commission. The forward-looking statements in this press release are subject to the safe harbor protection provided under the securities law.
(From SI news) |
