Re: Asia Warnings
Just when I thought it was winding down, along comes a bunch of them. I'm noticing they are getting away from strictly tech warnings into other industries. Maybe they will start to wind down now.
MikeM(From Florida)
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CIDCO's Second Quarter 1998 Results to Be Below Expectations
MORGAN HILL, Calif., June 22 /PRNewswire/ -- CIDCO Incorporated today announced that, based on current information, the Company expects revenue for its second quarter ending June 30, 1998 will be approximately 20 percent lower than the revenue estimates published by Wall Street analysts at the beginning of the quarter. As a result of the lower than expected revenue and continued pricing pressure, the Company expects to report a net operating loss for the second quarter of approximately $6 million. CIDCO expects to release final results for the second quarter on July 22, 1998 after the close of market.
CIDCO attributed the revenue shortfall largely to program delays during June with two of its major RBOC customers, substantially lower than expected sales through its CIDCO direct upsell business, and a delay in the rollout and promotion of sales to NTT in Japan. Profit pressure is the result of a highly competitive pricing environment coupled with lower than expected revenues in CIDCO's largely fixed cost expense model.
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Cincinnati Milacron Tempers Outlook for Second Half
CINCINNATI, June 22 /PRNewswire/ -- Cincinnati Milacron Inc. (NYSE: CMZ - news) said today that, despite good contributions from recent acquisitions and continued recovery in European markets, the impact of the Asian crisis on the company's domestic customers, plus the ongoing strike at General Motors, warrants a modest downward revision of estimates for second half sales and earnings. Results for the current June quarter, however, will likely be very close to current estimates, the company added. ''We're still looking at about a 5% sales gain overall in 1998 and a solid 8 to 12% EPS improvement over 1997, which was a record year for Milacron,'' said Daniel J. Meyer, chairman, president and chief executive officer.
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Hunt Corporation Reports 1998 Second Quarter Results
PHILADELPHIA--(BUSINESS WIRE)--June 22, 1998--Hunt Corporation Monday reported operating results for its second quarter ended May 31, 1998. Diluted earnings per share from continuing operations, excluding the impact of special items, of $.28 (or $.30 per share on a basic basis) were $.08 per share (or $.10 per share on a basic basis) above those for the same quarter of the prior year on a comparable basis.
On a reported basis, net sales were essentially flat compared to the second quarter of fiscal 1997, which included rationalized products. The 1998 second quarter earnings of $.28 on a diluted basis, excluding special items, were, however, below analysts' consensus estimates. The primary reasons for this were: higher than anticipated start-up costs related to the company's new substrate facility in the United Kingdom; legal fees and expenses incurred in litigation involving a claim against the company that one of the company's relatively minor products infringes a product of a competitor; and softness in sales related to the Asian financial crisis and general market conditions.
Hunt Corporation has operations in the United States, Canada, the United Kingdom, Holland, and Hong Kong, which are focused on consumer products and presentation products. Hunt is a leading company in providing office, and presentation and display products and solutions for the business, education and consumer markets.
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Equinox sees flat Q2 results
SUNRISE, Fla.,, June 22 (Reuters) - Equinox Systems Inc. said Monday it expects second quarter results to be about equal to year-earlier sales of $6.6 million and earnings of $0.15 per diluted share. Equinox President Bill Dambrackas told Reuters the company's original equipment manufacturer orders, in which Equinox makes components with the customer's name on them, will fall short of year-ago levels. OEM customers include Hewlett-Packard, IBM, AT&T, NCR and Unisys. "We don't know why OEM orders have dropped," he said. "There is an overall slowdown in OEM business, which means reduced orders to us." Dambrackas said the Asian monetary crisis could be a factor. The quarter's distribution sales were expected to meet expectations, the company said.
The company said in a statement that OEM orders are expected to recover in the second half of the year, and distribution sales should continue to rise. Equinox designs and markets server-based communications products.
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Richey Anticipates Lower Second Quarter Earnings
GARDEN GROVE, Calif., June 22 -- Richey Electronics, Inc. announced that second quarter earnings are likely to be below analysts' expectations. While the company believes that the long term outlook for the industry remains positive, results for April and May reflect extensive weakness in the broad electronics markets served by the company's customers, including the increasingly negative impact of the slowdown in Asia. With customer demand reduced and component supply plentiful, the distribution marketplace is currently plagued by inventory surpluses, decreased selling prices and pressures on gross margins.
Based upon current daily order and shipment rates, combined with the results of the first two months of the quarter, the company does not believe its results in June will enable it to achieve analysts' expectations for the quarter. Second quarter earnings from operations before any charges for the cost reduction described below, are expected to be about 25-35% lower than those in the first quarter ($0.21 per share diluted).
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The Dixie Group to Discontinue Its Knit Fabric and Apparel Business; Revises Second Quarter Earnings Expectations
CHATTANOOGA, Tenn.---June 22, 1998--Daniel K. Frierson, Chairman and Chief Executive Officer of the Dixie Group, Inc., today announced the decision to discontinue its knit fabric and apparel operations. Citing market weakness worsened by the Asian monetary crisis, Frierson said the business will be treated as a discontinued operation for the second quarter ending June 27, 1998, and full year ending December 26, 1998. Frierson stated that certain other markets served by Dixie's yarns business were also experiencing weaker demand and price softness.
The Company's Floorcovering markets remain strong and, while below expectations in some areas, sales and earnings have increased over 1997. Frierson stated that the Company plans to make appropriate one-time adjustments in the second quarter to re-value the knit fabric and apparel assets as discontinued operations. Final results for the second quarter and first half of 1998 are expected to be reported July 30, 1998. "The decision to divest these under-performing businesses was made only after careful analysis of current and prospective market conditions," Frierson stated. "The worsening impact of Asian imports on the apparel markets has driven the returns on the knit fabric and apparel assets below our targets. We are pursuing opportunities to sell the fabric business and are taking action to wind down the apparel business. "Results for our Specialty Yarns Business in the second quarter also were weaker than last year's relatively strong second quarter performance -- and below our expectations.
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