Pace Shares Rise Despite a Tough 2011

PUBLISHED: Mar 06 2012 @ 10:48 | Comments (0) | More info about Lou Gutheil

Despite a difficult year in 2011, shares of Pace Plc (LSE:PIC) were up over 10% on the LSE today, trading at 89.50 pence following the release of the company’s preliminary results for the year.

A Difficult Year

Both the Japanese tsunami and the flooding in Thailand disrupted Pace’s supply chain, adversely affecting the company’s ability to get hard disk drives to market in a timely manner. The inability to deliver product manufactured in Thailand by Western Digital and Seagate negatively impacted Pace’s revenues by approximately $36 million. The company also experienced inventory control problems and reduced profits in the European market in 2011.

The Report

While total revenues were up 11.9% to $2,309.3m, nearly all other financial indicators were down from the previous year. The positive market response seems to indicate investor confidence in Pace’s new CEO, Mike Pulli, who stepped into that position in December 2011, and the board’s strategic plans. The company expects business to continue to be adversely affected by the supply chain issue throughout the first half of 2012.

CEO Comments

Mr. Pulli painted a positive outlook for the company saying, “I am pleased to report results in line with the guidance issued in November 2011. Following the Strategic Review and actions subsequently taken there is a clear route to delivering a successful 2012 for Pace. Our focus on operational improvement and efficiency is already starting to deliver tangible results and will contribute further to our future competitive advantage. We continue to strategically invest in leveraging our technology assets across our markets. We are now firmly focused on execution and delivering a fitter, more profitable business with strong cash flow.”

Company Spotlight

A world leader in providing products and services for the broadcast and broadband industries, Pace is the world’s largest manufacturer of television set-top boxes.

References
↑ Official company history
↑ The Press Association
↑ Official company report
↑ Official company information

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