Symmetry Medical (NYSE:SMA) said today that it sold its Clamonta Ltd. aerospace subsidiary to the HLDF Corp. for roughly $1.3 million (£0.8 million), but remains committed to the aerospace machining market.
The move prompted Symmetry to cut its guidance for 2014, sending share prices down slightly on Wall Street.
"The sale of our Clamonta Ltd. subsidiary is an appropriate step to focus on our core markets and reduce our manufacturing footprint. While Clamonta had a challenging 2013 and continued to negatively impact our overall profitability, I am proud of the progress made by the local team and believe they and their customers will be best served as part of a new entity," president & CEO Thomas Sullivan said in prepared remarks. "Symmetry remains committed to the Aerospace forging and associated machining segment of the market and will continue to serve Aerospace customers from our Lansing, Mich., and Sheffield, U.K., facilities."
The Clamonta business, which put up sales of $11.4 million last year, posted net losses for 2013 and the 1st quarter of 2014, CFO Fred Hite said in a statement.
Symmetry cut its outlook for the rest of the year to reflect loss of about $15 million in expected revenues from Clamonta, saying it now expects to post earnings per share of 12¢-18¢, down from prior guidance of 26¢-32¢. Full-year sales are now forecast to be between $393 million and $403 million, down from $408 million to $418 million.
SMA shares opened down 0.1% at $8.01 apiece today.
In February, Symmetry said it plans to close a medical instruments plant in Cheltenham, England, this year, meaning layoffs for 40 workers there.