Shares of Technitrol plunged on Friday after the company reported a $2.6 million loss for the fourth quarter and lowered its dividend.
The electronics component producer reported late Thursday its loss amounted to 6 cents a share for the three months ended Dec. 26, compared with net income of $16.8 million, or 41 cents per share, a year ago. The results include a $5.5 million charge, largely for expenses related to previously announced job cuts.
Excluding severance, impairment and other associated costs, the company said it would have earned 5 cents a share in the latest quarter.
Analysts polled by Thomson Reuters expected the company to earn 21 cents per share for the quarter. Analyst estimates typically exclude one-time items.
Technitrol's total sales dropped to $212.8 million from $256.5 million a year ago, due in part to a decline in demand.
The company said it is continuing its cost-cutting and other efforts. In a statement, the company said that Technitrol has "been through very difficult times in the past, and its management is familiar with the type of measures necessary to emerge successfully as a stronger company."
The company also announced it was reducing its quarterly dividend to 2.5 cents per share, down from its previous 8.8 cent per share dividend. The current dividend will be paid April 17 to shareholders of record as of April 3.
Technitrol did not issue guidance for the coming year, saying the "magnitude and duration of the current recession remain unknown", making it difficult to create a reliable forecast.
Shares of Technitrol fell 63 cents, or 22 percent, to close at $2.19 on Friday after sinking to a 52-week low of $1.83 earlier inn the session.
