Gooch & Housego, a manufacturer of photonic components & systems, said Wednesday it expected growth for 2019 in the low single digit compared to last year amid falling demand for critical components.
'We believe timing and mix will result in a FY 2019 group trading performance showing low single digit growth compared to last year,' the commapny said.
During the first four months of the fiscal year the company saw a downturn in demand for critical components used in industrial lasers for microelectronic manufacturing, particularly from China.
The demand in the microelectronics sector was expected to weaken compared with the record levels in 2018, but uncertainty, particularly in the Chinese market, had meant that excess inventory in the supply chain may now take longer than expected to normalise, the company said.
The industrial laser market, however, was expected to pick up in the second half of 2019, the company added.
Demand for fibre optic products, and hi- reliability fibre couplers used in undersea cable networks had strengthened still further.
The company said it would invest in further capacity to take advantage consolidate its 'market leading' position in hi- reliability fibre couplers, which were expected to experience a multi-year growth phase.
'The benefits of the first phase of this growth are expected to become apparent in the second half of the financial year,' the company said.
At 8:49am: (LON:GHH) Gooch Housego PLC share price was -312.5p at 1172.5p