Methode Electronics Initiates Discontinuation of Dabir Surfaces, Inc.
13 Julho 2023 - 6:15PM
Methode Electronics, Inc. (NYSE: MEI), a leading
global supplier of custom-engineered solutions for user interface,
LED lighting and power distribution applications, announced today
the initiation of the discontinuation of the Dabir Surfaces, Inc.
business.
The Company is executing a wind down process of
the Dabir business. The impact from severance, asset impairments,
and other associated costs to fiscal year 2024 pre-tax income is
expected to be between $1.5 million and $3.5 million with most of
the cost to be recognized in the first half of fiscal 2024. The
wind down process is expected to be completed by approximately the
end of fiscal 2024 in accordance with contractual and regulatory
commitments.
President and Chief Executive Officer Donald W.
Duda said, “After exploring multiple strategic options, it became
unfortunately clear that a discontinuation of the business was the
best financial path forward. I want to thank the Dabir and Methode
employees associated with the business for all their efforts as
well as the customers who provided the opportunity to market the
Dabir product. Methode will now focus on growing its core
businesses and executing the numerous program launches scheduled
for this year and next.”
The Company expects to provide additional
details on the Dabir discontinuation when it reports its fiscal
2024 first quarter results.
About Methode Electronics,
Inc.Methode Electronics, Inc. (NYSE: MEI) is a leading
global supplier of custom-engineered solutions with sales,
engineering and manufacturing locations in North America, Europe,
Middle East and Asia. We design, engineer, and produce mechatronic
products for OEMs utilizing our broad range of technologies for
user interface, LED lighting system, power distribution and sensor
applications.
Our solutions are found in the end markets of
transportation (including automotive, commercial vehicle, e-bike,
aerospace, bus, and rail), cloud computing infrastructure,
construction equipment, and consumer appliance. Our business is
managed on a segment basis, with those segments being Automotive,
Industrial, Interface and Medical.
Forward-Looking StatementsThis
news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 that
reflect, when made, our current views with respect to current
events and financial performance. Such forward-looking statements
are subject to many risks, uncertainties and factors relating to
our operations and business environment, which may cause our actual
results to be materially different from any future results,
expressed or implied, by such forward-looking statements. All
statements that address future operating, financial or business
performance or our strategies or expectations are forward-looking
statements. In some cases, you can identify these statements by
forward-looking words such as “may,” “might,” “will,” “should,”
“expects,” “plans,” “intends,” “anticipates,” “believes,”
“estimates,” “predicts,” “projects,” “potential,” “outlook” or
“continue,” and other comparable terminology. Factors that could
cause actual results to differ materially from these
forward-looking statements include, but are not limited to, the
following:
- Dependence on our supply chain,
including semiconductor suppliers;
- Impact from pandemics, such as the
COVID-19 pandemic;
- Dependence on the automotive and
commercial vehicle industries;
- Impact from inflation;
- Dependence on a small number of
large customers, including one large automotive customer;
- Risks relating to our use of
requirements contracts;
- Failure to attract and retain
qualified personnel;
- Risks related to conducting global
operations;
- Potential work stoppages;
- Dependence on the availability and
price of materials;
- Timing, quality and cost of new
program launches;
- Ability to compete
effectively;
- Ability to withstand pricing
pressures, including price reductions;
- Our lengthy sales cycle;
- Ability to successfully benefit
from acquisitions and divestitures;
- Impact from production delays or
cancelled orders;
- Investment in programs prior to the
recognition of revenue;
- Electric vehicle ("EV") adoption
rates;
- Ability to withstand business
interruptions;
- Breaches to our information
technology systems or service interruptions;
- Ability to keep pace with rapid
technological changes;
- Ability to protect our intellectual
property;
- Costs associated with
environmental, health and safety regulations;
- International trade disputes
resulting in tariffs and our ability to mitigate tariffs;
- Impact from climate change and
related regulations;
- Ability to avoid design or
manufacturing defects;
- Ability to remediate a material
weakness in our internal control over financial reporting;
- Recognition of goodwill and other
intangible asset impairment charges;
- Ability to manage our debt levels
and any restrictions thereunder;
- Interest rate changes and variable
rate instruments;
- Currency fluctuations;
- Adjustments to compensation expense
for performance-based awards;
- Timing and magnitude of costs
associated with restructuring activities;
- Income tax rate fluctuations;
and
- Judgments related to accounting for
tax positions.
Additional details and factors are discussed
under the caption “Risk Factors” in our Annual Report. New risks
and uncertainties arise from time to time, and it is impossible for
us to predict these events or how they may affect us. Any
forward-looking statements made by us speak only as of the date on
which they are made. We are under no obligation to, and expressly
disclaim any obligation to, update or alter our forward-looking
statements, whether as a result of new information, subsequent
events or otherwise.
For Methode Electronics, Inc.Robert K.
CherryVice President, Investor
Relationsrcherry@methode.com708-457-4030
Methode Electronics (NYSE:MEI)
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