Advertisement

Carclo reports weakened demand from customers in December; shares fall

Technology-led plastics group Carclo has reported that demand from some of its customers weakened in December and was slow to recover in January, according to an interim management statement issued on Thursday morning.

Technology-led plastics group Carclo has reported that demand from some of its customers weakened in December and was slow to recover in January, according to an interim management statement issued on Thursday morning.

The group's Technical Plastics division experienced the lower demand from some customers but Carclo stated that schedules had returned to normal, with February starting well.

Advertisement - Article continues below

In the group's LED Technologies business segment, the company stated that the Wipac division's supercar lighting business had enjoyed a "solid start to its fourth quarter" while its precision engineering division continued to perform well.

Delays in Atmel supply chainIn December, the group reported that volume production of touch sensors had commenced and shipments of touch sensors had exceeded the minimum volume threshold in its agreement with Atmel Corporation.

However in today's announcement, the group reported there had been "a delay in the Atmel managed downstream supply chain associated with the differing manufacturing requirements between ITO and XSense touch sensors".

Carclo reported that the manufacturing issues had now been "largely resolved", adding that all parties were confident that the production ramp-up would commence "shortly".

The group stated that a $10m prepayment had been triggered but said it would not be received until full-scale production had resumed and Atmel had invoiced its customer.

CIT film sales to reduce in current quarterCarclo also stated that validation of the Atmel US XSense facility was "imminent but not yet complete", explaining that this "will reduce CIT film sales in the present quarter relative to our previous expectations".

The group added: "Commercially, Atmel report continuing high interest in XSense with a further design nomination confirmed and a promising pipeline of projects. Plans are well advanced at Atmel for further increases in manufacturing capacity in the second half of 2013."

Approximately 40% of Carclo's turnover comes from the sale of precision products to the premium automotive and aerospace sectors. The remaining 60% is generated by sales of injection-moulded plastic components used in medical, optical and electronics products.

Carclo's shares were down 6.49% to 456p at 09:36 on Thursday.

MF

Advertisement
Advertisement

Recommended

Visit/investments/investment-strategy/601044/broker-safety-your-questions-answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Visit/investments/investment-strategy/600861/how-demographics-affects-stock-valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/stockmarkets/600634/why-investors-should-be-cautiously-bullish-for-2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Visit/investments/commodities/industrial-metals/601401/money-printing-infrastructure-base-metals-copper
Industrial metals

Governments’ money-printing mania bodes well for base metals

Money is being printed like there is no tomorrow. Much of it will be used to pay for infrastructure projects – and that will be good for metals, says …
27 May 2020
Visit/economy/eu-economy/601422/heres-why-investors-should-care-about-the-eus-plan-to-tackle-covid-19
EU Economy

Here’s why investors should care about the EU’s plan to tackle Covid-19

The EU's €750bn rescue package makes a break-up of the eurozone much less likely. John Stepek explains why the scheme is such a big deal, and what it …
28 May 2020
Visit/investments/funds/601385/in-support-of-active-fund-management
Funds

In support of active fund management

We’re fans of passive investing here at MoneyWeek. But active fund management has its place too, says Merryn Somerset Webb.
25 May 2020