Thai floods to hit Pace profits into next year
Nick Clark is the arts correspondent of The Independent. He joined the newspaper in June 2007, initially reporting on the stock markets. He has covered beats including the City, and technology, media and telecoms and made the switch to arts in December 2011. He has also contributed articles to the sports section.
Friday 18 November 2011
Pace, the biggest set-top box maker in the world, warned that the impact of the floods in Thailand could hit profits by as much as $50m (£32m) next year.
The Yorkshire-based group has already taken a $9.5m hit on operating profits following the devastating floods which hit the production of hard drives for its TV boxes.
After discussions with suppliers and customers, it yesterday forecast that profits in 2012 would be between $35m and $50m lower than previously expected.
Neil Gaydon, Pace's chief executive, said: "In common with the broader consumer electronics industry, the immediate impact to our business of the Thailand flooding is significant, requiring diligent management." He added: "We've hit a bump, but we will get through it."
The Thai operation of Western Digital provided over 60 per cent of the hard drives found in Pace's personal video recorder boxes.
Mr Gaydon said: "We're not out of the woods yet; 2012 will be very tight. But the hard drive situation will go away. It is a one-off event of extraordinary magnitude."
The group also revealed the results of a strategic review, launched in May. Mr Gaydon said the overhaul would give a "clear roadmap to increased operating profit".
- 1 Apple has installed security backdoors on 600m iPhones and iPads, claims security researcher
- 2 UK pirates will get four warning letters a year
- 3 Fight Club 2: Chuck Palahniuk sequel is a 'meta-fictional comment on the cultural response to the original'
- 4 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 5 Israel-Gaza conflict: Deadly flechette shells 'used by Israeli military in Gaza Strip’
Hacking Trial: Rebekah Brooks, Raisa and a new twist in the saga of a horse fit for a Prime Minister
Israel-Gaza conflict: Palestinian death toll now exceeds 500 – but Israel fights on
Income tax league: Revealed - the UK towns where people pay the most and least tax
Israel-Gaza conflict: Deadly flechette shells 'used by Israeli military in Gaza Strip’
Malaysia Airlines MH17 crash: Blogger captures footage ‘showing BUK missile launcher that shot down jet’ now back in Russia
Malaysia Airlines flight MH17 crash: 'Nine Britons, 23 Americans and 80 children' feared dead after Boeing passenger jet is 'shot down' near Ukraine-Russia border
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
iJobs Money & Business
£850 - £950 per day: Orgtel: Programme Director - Conduct Risk - Banking - £85...
£45000 - £50000 Per Annum + excellent benefits: Clearwater People Solutions Lt...
£250 - £300 per day + competitive: Orgtel: Finance Manager - Accountant - Bank...
£100000 - £120000 per annum + BONUS + BENEFITS: Harrington Starr: A leading fi...