This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ford Cuts Bleed Sypris

Sypris Solutions (SYPR - Get Report) warned Tuesday that it expects a third-quarter loss as a result of cutbacks at big customer Ford (F - Get Report).

The Louisville, Ky., technology outsourcer expects to lose 4 or 5 cents a share for the quarter on sales of about $126 million. Earlier, the company had expected to make 3 to 6 cents a share on revenue of about $140 million.

Free cash flow is expected to be $9 to $11 million, exceeding prior guidance of $0 to $5 million.

"Our Industrial Group experienced a 39% reduction in orders for component shipments to the Ford Motor company during the third quarter, the result of which had a material impact on the company's revenue and income for the period," said CEO Jeffrey T. Gill. "Unfortunately, the rightsizing of our workforces in each of the plants impacted by the change required much of the quarter to complete, further compressing the group's short-term margins. The outlook for the balance of the year appears to be stable for the moment." Gill continued, "The lower than expected revenue and margins for the quarter were also driven by our Electronics Group, which generated lower sales primarily due to a reduction in the initial rate of production for the launch of a new classified program. The short-term change in schedules was necessitated to incorporate several new important design modifications earlier in the product's life cycle. We now expect to reach full rates of production early in 2007."

"Despite these headwinds, the company continued to generate significant free cash flow of approximately $10 million, resulting in $35 million of free cash flow on a year to date basis. As a result, the company's balance sheet remains a source of strength, with net debt representing less than 14% of total capital. As we go forward, we will continue to evaluate opportunities to use this strength to improve margins and increase the company's market share."

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
F $15.92 -1.40%
SYPR $2.08 -5.50%
YHOO $44.13 -0.69%
AAPL $124.25 -0.14%
FB $81.66 -0.67%

Markets

DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs