Aftermarket Technology (ATAC) slashed third-quarter guidance and withdrew full-year targets, citing operational setbacks and a big goodwill impairment charge.
The Downers Grove, Ill., supply chain outfit said it expects to lose 15 cents to 19 cents a share from continuing operations for the third quarter. The company had previously forecast a 38-cent profit.
Aftermarket said the quarter will be hit by a 45-cent-a-share impairment of goodwill for its U.K.-based Drivetrain remanufacturing operation and its Logistics segment's automotive material reclamation operation.
The quarter was also hit to the tune of 12 or 13 cents a share, due to higher-than-expected costs to integrate the test and repair business acquired from
, operational problems and program changes associated with the launch of a logistics program, and a temporary change in product mix driven by the customer in a recently launched end-of-life cell phone liquidation program.
On the drivetrain side, the most significant factor contributing to the earnings revision was the delay in the launch of the customer pay program for Honda dealers.
The company is withdrawing its full-year earnings estimate and expects to be able to provide an updated view for the full year next month.
"We certainly did not anticipate this action at the time of our second quarter call and we are disappointed in the setbacks that led us here," CEO Don Johnson said. "It is important to emphasize, however, that the vast majority of our base business is performing at expected levels consistent with our three-year goals."