SANTA ANA, Calif. (AP) ¿ TTM Technologies Inc., which manufactures printed circuit boards, said Tuesday weak demand is forcing it to close two California plants that together employ 347 workers.
The layoffs represent about 11 percent of TTM's work force, the company said.
In a statement, TTM said it expects to record between $11 million and $14 million in separation, asset impairment and disposal costs primarily in the third quarter. The closures are expected to result in about $14 million in annual savings, the company said.
"This is a very unfortunate but necessary decision based on the prospects of long-term weaker demand for these products," said Kent Alder, CEO of TTM Technologies.Excluding impairment charges and closure costs, the company said it's on track to achieve its guidance for the third quarter. It has forecast earnings of 9 cents to 15 cents per share and revenue in a range of $134 million to $142 million. On average, analysts surveyed by Thomson Financial expected profit of 15 cents per share and revenue of $138 million. TTM said production at the Los Angeles facility will be transferred to other sites in California, Utah and Wisconsin. Backplane assembly services provided by the Hayward plant will be transferred to the plants in Shanghai, China and Stafford Springs, Conn. Shares of TTM slipped 11 cents to close at $10.01 Tuesday.