LoJack slashes guidance citing falling new car sales
LoJack Corp., the Westwood company that makes vehicle-tracking devices, slashed its guidance yesterday for 2008 due to declining new car sales.
The company now expects earnings of 75 cents to 85 cents per share on revenue of $213 million and $218 million. It previously projected earnings of $1.10 to $1.20 per share on revenue of $232 million to $239 million. Wall Street projected a profit of $1.15 on revenue of $233.2 million, according to a Thomson Financial poll of analysts.
Chief Executive Richard T. Riley blamed the shortfall on a drop in new car sales in the first quarter, implying that conditions in the auto market may take longer than expected to improve.
"The acceleration in the decline of new car sales in the first quarter, announced manufacturing cutbacks on the part of many of the auto manufacturers and concern expressed by several of the large auto retailers, now lead us to believe that the challenges in the domestic auto industry will not improve in the second half of the year, as we originally planned," he said.
He added that unit volumes will continue to be strong in the company's international division.
The company said it expects a profit of 4 cents per share in the first quarter and 20 cents for the second quarter.
Analysts polled by Thomson Financial expect earnings of 25 cents for the first quarter and 30 cents for the second quarter.
LoJack shares rose 10 cents to close at $12.74 yesterday on the Nasdaq Stock Market. (AP)
