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Hutchinson 2Q loss widens, job cuts planned

By Associated Press
April 29, 2008 | Comments (0)

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Hutchinson Technology Inc., which makes suspension assemblies for disk drives, on Tuesday said its fiscal 2008 second-quarter loss widened on a drop in sales and it will slash up to 80 jobs in a cost-cutting move.

The company lost $6.2 million, or 25 cents per share, compared with a loss of $3.6 million, or 14 cents per share, during the same period a year prior. Revenue fell 16 percent to $143.8 million from $170.7 million.

Analysts surveyed by Thomson Financial expected profit of 9 cents per share, on sales of $165.5 million.

Hutchinson said it will cut 80 jobs companywide over the next several weeks and its third-quarter results will include severance charges. It expects the job cuts to reduce expenses by $10 million to $12 million annually.

Shares fell $1.28, or 7.7 percent, to $15.35 in after-hours trading after falling 20 cents to close at $16.63 during the regular trading session.

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