(Corrects paragraph 2 to add dropped word 'pretax')
Oct 19 Laird Plc, a supplier to
smartphone makers including Apple Inc, plummeted in
early trading after it warned of lower full-year profit, saying
that production growth for mobile devices this year was lagging
previous cycles and that it had "poor" visibility on order
Shares in the company nearly halved to 156.10 pence posting
its worst single day drop.
The electronic component maker's profit warning follows
troubles facing Samsung Electronics Co Ltd, which
analysts say is a key customer for Laird.
Samsung scrapped its flagship Galaxy Note 7 smartphone last
week less than two months after its launch, after failing to
resolve safety concerns with the device.
Laird said it expected full-year underlying pretax profit to
be about 50 million pounds ($61 million), lower than 73.1
million pounds it earned in the year ended December 2015, adding
that it "experienced increased margin pressure due to
unprecedented pricing pressures."
Laird, which is on Apple's official list of suppliers, had
not previously given any guidance for the full year.
Apple said in July that it had sold 40.4 million iPhones in
the third quarter, down 15 percent from the year-ago quarter,
noting a drop in sales for its flagship product for the second
Laird said on Wednesday that revenue in the performance
materials unit, its biggest business by revenue, fell 5 percent
on a constant currency basis in the third quarter ended Sept.
In August, Laird lost its top boss to struggling British
aerospace and defence company Cobham Plc and appointed
CFO Tony Quinlan to take over as chief executive on Sept. 5.
($1 = 0.8149 pounds)
(Reporting by Pranav Kiran in Bengaluru; Editing by Gopakumar
Warrier and Amrutha Gayathri)