Richey Lowers Forecast
Richey Electronics Inc., in a gloomy forecast, said Monday that second-quarter operating profits are likely to be below analysts’ expectations and that it plans to take a $1-million pretax restructuring charge to account for a downturn in business.
The Garden Grove provider of electronic parts and services said that “extensive weakness” in the electronics market isn’t likely to improve through the remainder of the year. Richey is taking steps to cut costs by $12 million, or 25%.
Before Monday’s announcement, a First Call consensus of four analysts predicted that Richey would earn 22 cents a share in the second quarter. A year earlier, Richey earned $1.7 million, or 18 cents a share.