LONDON (Alliance News) - Gooch & Housego PLC said Tuesday trading in the first half was in line with management expectations, taking into account previous guidance of a downturn in demand.
The photonics product manufacturer said in the six months to March 31 the company saw a downturn in demand for components used in industrial lasers for microelectronic manufacturing. The downturn was blamed on decreased demand from China.
Gooch & Housego, however, noted the demand for fibre optic products and hi-reliability fibre couplers used in undersea cable networks was "strong".
Given these trends, Gooch & Housego expects its full year trading to be in line with its own expectations. At March 31, the company's order book stood at GBP93.2 million, 10% higher compared to the year before.
"G&H has long been aware of the risks associated with the cyclical nature of the electronics sector and more recently the impact of the US-China trade tariffs. During the first six months we experienced a cyclical downturn in demand for industrial lasers used in microelectronic manufacturing, though we expect demand to pick up during the second half of the financial year," said Chief Executive Mark Webster.
Webster added: "Our fibre optics business is performing well and we are investing in further capacity to take advantage of the strong growth in demand for hi- reliability fibre couplers. We remain confident in the potential of the industrial laser sector and our other markets to provide attractive long term growth."
Gooch & Housego said it remains in a strong financial position, allowing it to make further investments in the business.
The company is scheduled to release its interim results on June 4.
Shares in Gooch & Housego were down 3.4% Tuesday at 1,121.00 pence each.
Gooch & Housego (GHH)