Laird crashes with warning on profit drop
A British-based smartphone supplier for Apple Inc. and Samsung Electronics Co. Ltd. lost more than half of its value in trading on Wednesday after it reported on a slowdown in orders for components. Laird Plc said it expects this year's underlying profit to tumble from £73.1 million to £50 million.
Most of the friction is coming from the area of performance materials, which are used to insulate electronics from high temperatures and electromagnetic interference. "We have experienced increased margin pressure due to unprecedented pricing pressures and some operational factors," the quarterly trading update said. Tony Quinlan, chief executive, stated other sectors are continuing to perform well and expressed confidence the business "will stabilize and improve" by managing costs and cash. Laird's report may point to a weakening in the mobile devices market.
The company's shares nosedived 48.27% to 159.6 pence in London at 10:04 a.m. CET, after going as low as 153.1 pence.