Alps Electric Jumps on 3,000 Jobs Cuts to Stem Losses
Alps Electric Co. (6770), a Japanese electronics supplier for carmakers and Apple Inc. (AAPL) jumped the most in more than 22 months after announcing it will cut 3,000 jobs worldwide to help stem losses.
The company forecast a net loss of about 8.5 billion yen ($93 million) for the year ending March, compared with a previous forecast for 1.3 billion profit, as sales to consumers will remain sluggish, it said in a statement. Alps plans to boost sales of car electronics and smartphone-related products.
“The job cuts are aimed at improving profitability,” Satoshi Yamamoto, a company spokesman said by phone today. The reductions will be conducted in the fiscal year ending March 2014, he said. While Alps, which has about 32,000 workers, will focus on cutting part-time and contract workers, full-time staff will also be affected, Yamamoto said.
Alps cut its full-year operating profit forecast by 32 percent to 8 billion yen while reducing the sales estimate by 0.6 percent to 541 billion yen.
Alps has gained 3.3 percent this month. Before today’s share-price gain, the stock had lost 5.8 percent since the start of the year.
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