Japanese tsunami hits Pace profits
The company, which is based in Saltaire, near Bradford, expects operating profit for the year ending December 31 to be around $150m to $170 million (£97m - £110m).
Several seaports in Japan, the world’s third largest economy, handling international trade sustained major damage, with most likely to be out of operations for months, posing challenges for global supply chains.
Advertisement
Hide AdAdvertisement
Hide Ad“Despite revenues and product shipments being on track, we have made a disappointing start to the financial year with our profitability,” chief executive Neil Gaydon said in a statement.
“Although we will now not be able to make up this first-half under-performance in the second half we continue to drive long-term growth and profitability,” Mr Gaydon said.
The company also said a lack of demand for its Pace Networks products led to the closure of the division.
Pace now expects operating margins for the first half to be at around 5.5 per cent. It is confident of returning close to its medium-term operating-margin target of 8 per cent in the second half.