Monday October 21 8:05 AM EDT
Sheldahl Inc sees Q1 below break-even
NORTHFIELD, Minn., Oct 21 (Reuter) - Sheldahl Inc said on Monday it does not expect to break even in the fiscal first quarter but sees improving results thereafter.
"The second half of fiscal 1997 should be especially strong as micro products sales build," said the maker of flexible laminates, printed circuitry and other products used primarily in automotive electronics and data communications.
"We do not expect the level of growth in the automotive market that we experienced in 1996," said Chief Executive James Donaghy.
"New designs are scheduled for production late in the fiscal year. This, along with the current slow-down in auto industry component demand due to inventory balancing, will have the effect of pushing our automotive growth for the year into the four-to-five percent range," he said.
A new micro products plant is shipping commercial volumes of products for engineering qualification with customers in the United States, Japan, Korea, the Philippines and Taiwan.
"We expect these initial engineering qualifications to extend through our fiscal 1997 second quarter, with both sales and production to accelerate during the second half of the year," Donaghy said.
The company, reporting higher revenues but lower earnings for the fiscal fourth quarter, ended August 30, said the earnings decline was caused by a rise in costs and expenses associated with the production ramp-up of its Longmont, Colo., micro products facility. It also cited an increase in income tax due to the elimination of research and development tax credits.
-- Chicago Newsdesk 312-408-8787 |
