Cherry Anticipates Lower Sales and Earnings Per Share For Third Quarter
25 November 1999
Cherry Corporation Anticipates Lower Sales and Earnings Per Share For Third Quarter Versus Prior Year LevelsWAUKEGAN, Ill., Nov. 24 -- The Cherry Corporation today announced that it anticipates its sales and earnings per share for the third quarter ending November 30, 1999 will fall below prior year levels. Although the amounts are not presently determinable, the Company estimates that the sales shortfall could be in the range of 2 to 5 percent and the earnings per share shortfall could be in the range of 50 to 55 percent. The Company will announce its actual third quarter results the week of December 20, 1999. "Over the past several weeks, we have experienced difficulties in meeting the production requirements of our domestic automotive customers", said Peter Cherry, chairman and president. "In order to meet our delivery commitments, we have incurred substantial additional costs. Additionally, although demand for our semiconductor products is quite strong, we are encountering some capacity constraints which are temporarily hindering our ability to meet this demand. Actions are being taken at both operations to remedy these situations as quickly as possible but we will not have them completely resolved until the middle of the fourth quarter." As a result of these factors, the Company currently anticipates that fourth quarter earnings per share will also fall below the prior year level. The Cherry Corporation manufactures proprietary and custom electrical switches, sensors, electronic keyboards and controls, and semiconductors for the worldwide automotive, computer, and consumer and commercial markets. The company has eight wholly owned subsidiaries in the United States, Germany, England, France, Australia, Czech Republic, Mexico, and Hong Kong. Cherry also has 50-50 joint ventures in Japan, Hirose Cherry Precision Company Limited, and in India, TVS Cherry Limited. Additional information is available on the company's website at http://www.cherrycorp.com . Certain statements in this press release, including those regarding the anticipated sales and earnings for the third and fourth quarter are "forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve certain risks and uncertainties that could significantly impact future results. A discussion of these risks and uncertainties is contained in the Company's Form 10-K for the year ended February 28, 1999, filed with the Securities and Exchange Commission.