* Sees H1 core earnings margin below 30 pct
* Warns FY earnings margin to come in below normal levels
* Guides to improvement in H2
* Shares slide 27 pct
LONDON, April 9 AZ Electronic Materials
, a maker of chemicals for Apple's iPad
displays and memory chips, warned that profit would be lower
than expected in the first half, wiping a quarter of the value
off its share price.
The company said on Tuesday that its core earnings margin
for the first six months of the year would dip below 30 percent,
resulting in 2013 group margins coming in below normal levels.
It forecast an improvement in the second half.
A weaker than expected performance in the part of its
business which provides materials used in integrated circuits
was to blame, said the company.
Shares in AZ Electronics crashed 27 percent to 269 pence at
0843 GMT, hitting their lowest level for around nine months and
leading the FTSE 250 losers board.
"Softness in demand patterns within the integrated circuit
industry was compounded by increased pressure from dual sourcing
by certain customers," AZ said in a statement.
Analysts at Singer called the update "disappointing" and
said that the lower than normal margin implied a possible 2013
earnings downgrade of over 10 percent.
"We believe that a number of the challenges are likely to be
short term ... but we expect the shares to come under some
pressure pending visibility of the anticipated second half
recovery," they said.
AZ said discussions with customers meant it was confident of
a stronger second half. It also gave assurances on profit growth
beyond 2013 citing encouraging progress on the development of