Pace on supplier troubles and profit guidance

Pace has issued a statement giving an update on the effect of Western Digital’s Thailand factory closure and 2011 Operating profit guidance:

“Following the recent announcement by Western Digital Corporation that it has suspended production of hard disk drives at its manufacturing facilities in Thailand as a result of severe flooding, Pace has completed an initial assessment of the potential impact on its 2011 business. Because Western Digital is the major supplier of hard disk drives to Pace, this will negatively impact expected shipments of products with hard disk drives from this supplier during the remainder of this year.

Pace estimates the worst case impact on 2011 operating profit to be $9.5m, before taking account of possible mitigating actions. As a result, Pace’s operating profit for 2011 is now likely to fall below previous guidance of $150 million-$170 million.

Pace will provide its upcoming interim management statement, together with an update on its strategic review, on 17 November 2011.”

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