Andrew Corp. <ANDW.O> sees Q2 short of estimates
ORLAND PARK, Ill., March 8 (Reuters) - Andrew Corp., which supplies communications systems equipment, said Monday it expects its second quarter earnings to fall short of forecasts because of slow revenue in January and February.
"During the first two months of the March quarter revenue was slower than anticipated, mainly in the United States where customer spending in the wireless infrastructure market continues to slow," said chairman, president and chief executive Floyd English in a statement.
"We expect sales in the third and fourth quarter to be stronger than the first half due to normal business seasonality and to the higher capital expenditure spending plans announced but not yet implemented by some of our customers," English said.
The company said it planned to lower its cost structure in various businesses and locations and expected to trim its global workforce of roughly 4,000 people by 10 to 12 percent.
The goal of the cost-cutting program was to reduce annual operating costs, including cost of sales, selling, general and administrative expenses by at least $17 million. The company did not estimate how much the plan would cost, but did say it would continue to expand research and development activities.
Andrew Corp. said it expects sales for the quarter ended March 31 to be between $160 million and $170 million compared with $197 million a year ago. Earnings per share are expected to be $0.05 to $0.08, compared with $0.27 per share a year ago and below the $0.24 consensus estimate. The company's new estimate includes a $0.03 per share loss due to the devaluation of the real in Brazil, it said. Andrew Corp. shares closed Friday at 14-3/8 on Nasdaq. |
