Markets

Dialight Cuts FY19 Operating Profit View; Stock Dips

(RTTNews) - Shares of Dialight plc (DIA.L) were losing around 21 percent in the early morning trading in London after the provider of sustainable LED lighting for industrial applications trimmed its fiscal 2019 outlook for operating profit.\

In its trading update, the company said it now expects full-year EBIT to be in the range of 5 million pounds to 8 million after adjustment for non-underlying costs of about 6 million pounds in addition to those reported in August

The company previously expected fiscal 2019 underlying operating profit within the range of 10 million pounds to 13 million pounds.

The revision reflects very weak results in October and also the company's difficulty to predict the timing of orders. The company noted that with its exposure to US markets, the uncertainty of the trading relationship with China continues to be a significant headwind as it enters its traditionally busiest period.

Dialight said, "We remain in recovery mode with a strong focus on rebuilding customer and distributor confidence and continued investment in distinctive and competitive products. We have seen early signs of recovery but this has been hampered by the slowdown in the global markets."

The Signals and Components business has had a difficult year. The company expected some recovery in the second half of the year, however market conditions remain weak and recovery is not anticipated until the second half of 2020.

The company is scheduled to publish its full year results on March 16.

In London, Dialight shares were trading at 237.12 pence, down 21.35 percent.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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