NEW YORK (AP) -- Tyco Electronics Ltd., which makes electrical cables and other components, Thursday said it was seeing a sudden drop in demand and provided sales and earnings estimates far below those of Wall Street analysts.
"Since late September we have seen a sharp decrease in demand in most of our key end markets, especially in European automotive," said Chief Executive Officer Tom Lynch. "In response to these conditions, we are taking actions to accelerate our restructuring efforts and to reduce overhead."
For the fiscal first quarter, Tyco expects earnings of 19 cents to 23 cents per share, and an adjusted profit of 24 cents to 28 cents per share, well below the average analyst estimate at 54 cents, as polled by Thomson Reuters.
It also expects a sales decline of 16 percent to 19 percent from a year ago, including currency effects. That indicates a range of $2.98 billion to $3.09 billion. Analysts had been expecting sales of $3.41 billion.
Tyco shares fell $2.61, or 13.7 percent, to $16.38 in morning trading. Over the past year, the stock has ranged between $16.69 and $40.34.
Pembroke-Bermuda based Tyco Electronics was spun off last year from conglomerate Tyco International Ltd.