Brief: Wellington Drive Technologies Says Experiencing Impact From Component Supply & Customer Demand Uncertainty

Aofrio

15/03/2020 21:19

March 16 (Reuters) - Wellington Drive Technologies Ltd
 WDT.NZ :
    * IS CONTINUING TO EXPERIENCE SOME IMPACT FROM BOTH
COMPONENT
SUPPLY AND UNCERTAINTY IN CUSTOMER DEMAND
    * UPDATES ON COVID-19
    * FULLY PREPARED IN MANAGING OPERATIONS REMOTELY SHOULD MAIN
OFFICES IN NEW ZEALAND AND MEXICO BE DISRUPTED
    * 2020 FORECAST SALES ABOUT NZ$65 MILLION
    * CO HAS IMPLEMENTED 4-WEEK INTERNATIONAL TRAVEL BAN, OFFICE
VISIT
RESTRICTIONS & STAFF SELF-QUARANTINE PROCEDURES
    * WELLINGTON DRIVE TECHNOLOGIES SEES LONGER PERIOD BEFORE
NORMAL
PRODUCTION, SHIPPING PATTERNS; Q2-END INTO Q3 LIKELY FOR SOME
DEGREE OF NORMALISATION
    * POTENTIAL VOLATILITY AROUND 2020 FORECAST OUTLOOK IS HIGH
    * SEES POTENTIAL RISK TO REVENUE REMAINS AROUND ABOUT
US$3.6M
THROUGH Q1 AND Q2
    * DOES NOT EXPECT ALL DELAYED SUPPLY WILL BE PERISHABLE, SO
SOME
CATCH UP LATER IN Q2 AND INTO Q3 IS POSSIBLE
    * IF NECESSARY, CO CAN DEFER PLANNED INCREMENTAL GROWTH
SPENDING,
WHICH MAY MITIGATE IMPACT ON FORECAST 2020 EARNINGS
    * REITERATES DOES NOT EXPECT ALL OF DELAYED SUPPLY TO BE
PERISHABLE, SO SOME CATCH UP IN Q2 & Q3 IS POSSIBLE

Source text for Eikon:  urn:newsml:reuters.com:*:nNZW89dvJ2
Further company coverage:  WDT.NZ 

 (Reuters.Briefs@thomsonreuters.com)