By Katherine Hamilton
Key Tronic plans to cut jobs to increase efficiency after swinging to a loss in its second quarter.
The Spokane Valley, Wash.-based contract manufacturer didn't specify how many employees it would cut, but said the planned reductions are part of an effort to streamline operations.
Key Tronic posted a loss of $4.9 million, or 46 cents a share, for the quarter ended Dec. 28, compared with a profit of $1.1 million, or 10 cents a share, during the prior-year period.
Revenue slid 23% to $113.9 million, primarily due to unexpected shortages for components managed by a large customer, lower holiday-season production and reduced demand from certain customers, the company said.
The company declined to share an outlook for 2025 due to uncertainty related to tariffs. It's planning to increase production capacity in Arkansas and Vietnam to mitigate potentially negative effects from tariffs on China and Mexico, Chief Executive Brett Larsen said.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
February 04, 2025 17:05 ET (22:05 GMT)
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