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Raychem warns on earnings
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January 5, 1999: 11:36 a.m. ET
Electronics manufacturer's shares tumble on lower 2Q profit forecast
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NEW YORK (CNNfn) - Shares of Raychem Corp. plummeted Tuesday after the company said its fiscal 2Q earnings will fall short of expectations.
The Menlo Park, Calif.-based electronics manufacturer blamed the earnings drop on lower sales in late December, particularly in its circuit protection and energy businesses.
Raychem said it expects earnings to come in at roughly 40 cents a share, down from the 64 cents a share it earned in the year-ago period. Wall Street had been expecting earnings of roughly 48 cents a share.
The company, which makes products for the telecommunications, electronics, transportation and energy networks markets, expects 2Q revenue to drop 2.5 percent to about $455 million from last year's $467 million.
While certain electronics segment revenues rose by roughly 3 percent, those increases were more than offset by a 7 percent drop in telecommunications, energy and industrial segment revenues, the company said.
"Overall, the company is likely to see sequential improvements in revenues in each segment through the second half, but at a somewhat slower rate than previously expected," Raychem said.
After an opening delay due to an order imbalance, Raychem shares shed 4-1/8 to $29 a share in the morning trading session Tuesday on the New York Stock Exchange. 
-- from staff and wire reports
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Raychem
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