UK electronics distributor Eurodis Electron has warned that the global slump in semiconductor prices will result in a lower than expected interim pre-tax profit.
City brokers reacted by cutting estimates by up to one-third. Over 15p was slashed off the 138p share price.
Robert Leigh, Eurodis chairman, said he was embarrassed that the industry had not learned to prepare better for downturns. 'Six months ago I told shareholders the industry had matured and would be handling this cycle better,' he said. But he admitted this view had been over-optimistic.
Analysts had forecast a pre-tax profit of #15 million for Eurodis, but now put it at nearer #10 million. But they said the news was not a shock because a string of components distributors had warned that they were suffering from tough market conditions.
The past few months have seen the largest glut of semiconductors on the global market since 1985.
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