(Reuters) -Shares of Morgan Advanced Materials tumbled as much as 25% on Thursday after the British chip parts supplier forecast annual profit to be around the lower end of market expectations, and
Morgan Advanced Materials Shares Plunge Following Profit Warning
Impact of Profit Warning on Morgan Advanced Materials
(Reuters) -Shares of Morgan Advanced Materials tumbled as much as 25% on Thursday after the British chip parts supplier forecast annual profit to be around the lower end of market expectations, and warned that the market might not recover in the second half.
Market Reaction
Its shares dropped as much as 25% to 168 pence per share.
Industry Context
The semiconductor industry is under pressure as global uncertainty and trade tensions mount. President Donald Trump said Wednesday the U.S. will levy a 100% tariff on imported chips, exempting firms that manufacture domestically or have committed to doing so.
Company Outlook
The company, which has about 14 manufacturing sites in the United States, now expects its annual adjusted operating profit to fall at the lower end of the company-compiled consensus range of 115.6 million pounds ($154.62 million) to 126.3 million pounds.
"As we look towards 2026, although we note early signs of stabilisation we remain cautious about end-market demand given the ongoing external uncertainty," the company said in a statement.
Morgan Advanced Materials, which has operations across 60 sites globally, kept its full-year revenue guidance unchanged.
($1 = 0.7481 pounds)
(Reporting by Nithyashree R B in Bengaluru; Editing by Mrigank Dhaniwala)
