Agilent Technologies Inc, the biggest maker of scientific-testing equipment, plans to cut 600 jobs after reporting profit and sales that trailed
analysts’ estimates. The shares fell 7.6 percent.
First-quarter net income fell 47 percent to $64 million, or 18 cents a share, from $120 million, or 31 cents, a year ago, Santa Clara, California-based Agilent said today in a statement. Excluding some costs, profit was 20 cents a share, missing the 31-cent estimate of analysts surveyed by Bloomberg.
Sales slowed more than expected across all geographies, customer segments and business units, the company said. The job cuts add to 500 positions eliminated in December as Agilent worked to trim spending to cope with the recession. The reductions announced today are designed to save $150 million a year, Agilent said.
“The biggest fallout was in electronics measurement used in electronics manufacturing,” Chief Executive Officer William Sullivan said today in an interview. “This is a tough environment for companies that sell capital equipment.”
Sales for the period ended January 31 dropped 16 percent to $1.17 billion, missing projections for $1.27 billion. Agilent fell $1.35 to $16.30 in extended trading after closing at $17.65 on the New York Stock Exchange. The shares lost 57 percent last year.
For the current period, Agilent projected profit and sales will be “roughly in line” with the first quarter. Analysts estimated a 35-cent profit on revenue of $1.27 billion.
“Forecasting in the current environment is almost futile, as visibility is virtually nil,” Sullivan said in the statement.
Source:
http://infotech.indiatimes.com/News/Agilent_to_cut_600_jobs/articleshow/4148102.
analysts’ estimates. The shares fell 7.6 percent.
First-quarter net income fell 47 percent to $64 million, or 18 cents a share, from $120 million, or 31 cents, a year ago, Santa Clara, California-based Agilent said today in a statement. Excluding some costs, profit was 20 cents a share, missing the 31-cent estimate of analysts surveyed by Bloomberg.
Sales slowed more than expected across all geographies, customer segments and business units, the company said. The job cuts add to 500 positions eliminated in December as Agilent worked to trim spending to cope with the recession. The reductions announced today are designed to save $150 million a year, Agilent said.
“The biggest fallout was in electronics measurement used in electronics manufacturing,” Chief Executive Officer William Sullivan said today in an interview. “This is a tough environment for companies that sell capital equipment.”
Sales for the period ended January 31 dropped 16 percent to $1.17 billion, missing projections for $1.27 billion. Agilent fell $1.35 to $16.30 in extended trading after closing at $17.65 on the New York Stock Exchange. The shares lost 57 percent last year.
For the current period, Agilent projected profit and sales will be “roughly in line” with the first quarter. Analysts estimated a 35-cent profit on revenue of $1.27 billion.
“Forecasting in the current environment is almost futile, as visibility is virtually nil,” Sullivan said in the statement.
Source:
http://infotech.indiatimes.com/News/Agilent_to_cut_600_jobs/articleshow/4148102.