US prompts Telemetrix warning

By ROBERT LINDSAY
Updated:

 

ELECTRONICS manufacturer Telemetrix issued its second profit warning in two months as the US slowdown continues to bite. The shares plunged 25p, or 16%, to a 12-month low of 135p as it said its overall pre-goodwill operating profits for 2001 would be below last year's because of a drying-up of orders at its semiconductor manufacturing arm Zetex.

First-quarter orders at Zetex were strong but there was a sudden decline as the second quarter began in April. 'Our customers are currently working on very short lead times. Consequently there is very limited visibility of even short-term sales prospects for Zetex,' it said.

Telemetrix said there was widespread consensus that the sharply reduced levels of demand in the semiconductor industry would persist at least through the third quarter of this year.

Growth in profitability of its telecoms electronics arm Trend would, however, partly offset falling profits at Zetex. In February Telemetrix said sales for Zetex had declined but would get stronger in the second half. Today it admitted that its optimism had been misplaced and that the downturn in demand would continue for longer than it expected.

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