Citing the volatility of the U.S. automotive market and the unpredictable sales of the company’s two largest automotive customers, Methode Electronics said it will discontinue providing quarterly sales and earnings per share guidance.
It’s forecasting 2008 profit of 65 cents to 75 cents per share on revenue of $455 million to $475 million, compared with fiscal 2007 earnings of $26.1 million, or 71 cents per share, on revenue of $448.4 million.
The firm anticipates reduced production volumes for its legacy products from its U.S. automotive customers, as well as raw material price increases. It plans to continue winding down certain U.S. automotive legacy business during fiscal 2008, and said its weight-sensing product, used in a passive-occupant-detection system, will be hurt by lower production volumes from the three Detroit OEMs.