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".
Diving in at the deep end is no excuse for shirking the style stakes
- 2 Loom bands: Bids for dress made from colourful rubber pass £170,000 on eBay
- 3 Why I'm on the brink of burning my Israeli passport
- 4 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
- 5 The true Gaza back-story that the Israelis aren’t telling this week
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Loom bands: Bids for dress made from colourful rubber pass £170,000 on eBay
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Tommy Ramone dies: Last surviving founder and drummer seminal punk band The Ramones dies aged 62
Gaza-Israel conflict: The terrible price Palestinian children are paying for Israel’s war with Hamas
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Australia facing international condemnation after turning around Sri Lankans at sea
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
iJobs Money & Business
£70000 per annum: Harrington Starr: Information Security Manager (ISO 27001, A...
£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...
£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...
£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...