Edition:
India

Dialight Flags Trade Wars Uncertainty, Warns On Profit


Tuesday, 19 Nov 2019 

Nov 19 (Reuters) - Dialight PLC ::TRADING STATEMENT.REMAIN IN RECOVERY MODE.WITH OUR EXPOSURE TO US MARKETS, UNCERTAINTY OF TRADING RELATIONSHIP WITH CHINA CONTINUES TO BE A SIGNIFICANT HEADWIND.NOW EXPECT OUR FULL YEAR EBIT TO BE IN RANGE OF £5M TO £8M.SIGNALS AND COMPONENTS BUSINESS HAS HAD A DIFFICULT YEAR, WITH MARKET CONDITIONS REMAINING WEAK.HAD EXPECTED SOME RECOVERY IN SIGNALS AND COMPONENTS BUSINESS IN SECOND HALF OF YEAR.MARKET CONDITIONS IN SIGNALS AND COMPONENTS BUSINESS REMAIN WEAK AND RECOVERY IS NOT ANTICIPATED UNTIL SECOND HALF OF 2020.HAVE UNDERTAKEN A DETAILED REVIEW OF INVENTORY AND ARE SATISFIED THAT OBSOLESCENCE RISK IS LOW.DURING OUR RECOVERY HAVE CONTINUED TO INCREASE FINISHED GOODS INVENTORY.DIALIGHT SAYS CO UNABLE TO REACH COMPENSATION SETTLEMENT WITH SANMINA.INVENTORY UNWIND IS LIKELY TO TAKE LONGER THAN ANTICIPATED RESULTING IN A HIGHER NET DEBT THAN CURRENT MARKET FORECASTS.DIALIGHT SAYS CO EXPLORING OPTIONS TO RECOVER COSTS RELATED TO PERFORMANCE AND EXIT FROM SANMINA. 

Company Quote

246.0
6.0 +2.50%
13 Dec 2019