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Technitrol Announces 2004 Guidance, Updates 2003 Outlook
December 15, 2003 |Estimated reading time: 2 minutes
Philadelphia — Technitrol Inc. announced its revenue and earnings targets for fiscal 2004 and updated its outlook for fiscal 2003.
Based on euro-to-dollar exchange rates in effect at the beginning of December, the company expects revenues for fiscal 2004 to be between $535 million and $540 million, comprising $310 million to $312 million at Pulse and $225 million to $228 million at AMI Doduco. Targeted earnings, excluding severance and asset impairment charges that may occur in 2004, are between 80 and 83 cents per diluted share.
Pulse designs and manufactures a wide variety of passive magnetics-based electronic components and modules. Pulse's 2004 revenues are expected to be 6 to 8 percent higher than in 2003, despite the discontinuation of its automotive product lines and ongoing price deflation in the electronics supply chain. Unit demand growth is projected to be even stronger, but intense cost-reduction efforts throughout the industry and the influence of low-cost competitors in East Asia will continue to put pressure on selling prices. Year-over-year market growth assumptions are in line with customer reports and industry forecasts. Revenues are likely to be approximately 10 percent higher in the second half than in the first due to seasonal factors, particularly in Pulse's Consumer Division.
AMI Doduco manufactures a full range of electrical contacts, contact materials and contact assemblies. AMI Doduco is expected to experience year-over-year growth in revenues in 2004 similar to Pulse in percentage terms, driven by the translation effects of the euro's appreciation against the dollar since the beginning of 2003, the recent increase in silver prices and the anticipated effect of market initiatives currently under way with large customers in North America.
Technitrol's practice is to provide sales and earnings guidance for full fiscal year periods only, not for fiscal quarters. The company will update its 2004 outlook as quarterly results, acquisitions, or other events material to sales and earnings are announced.
Updating its most recent forecast provided on October 20, 2003, Technitrol said it anticipates revenues for the fiscal year ending December 26, 2003 to be between $501 million and $505 million, comprising approximately $290 million to $292 million at Pulse and $211 million to $213 million at AMI Doduco. The revenue outlook reflects somewhat higher-than-anticipated shipments at Pulse. It also reflects lower AMI Doduco volumes in North America and Europe, which are obscured by the positive translation effects of the strengthening euro and the significant increase in silver prices since October. Excluding severance and asset impairment charges reported in the first three quarters and those discussed in the next paragraph, the company continues to expect earnings to be between 67 and 69 cents per diluted share for the year. Technitrol will report fourth-quarter and unaudited full-year 2003 results on January 19, 2004.
Technitrol is a worldwide producer of electronic components, electrical contacts and assemblies and other precision-engineered parts and materials for manufacturers in the data networking, broadband/Internet access, consumer electronics, telecommunications, military/aerospace, automotive, and electrical equipment industries. For more information, visit www.technitrol.com.