Mobile phone components maker Filtronic recently forecast margin
pressure in the second half, offsetting earlier market optimism over
news it would run its loss-making semiconductors unit as a separate
business. Filtronic Plc shares initially rose as much as 11.8% to 422
pence, but then lost their earlier gains to trade down by 2-1/2 pence
to 375p by 1200 GMT, as analysts expressed concern over the group's
margins. Filtronic, whose main competitor in producing components for
mobile handsets is Swedish firm Allgon, said there would "likely be
some reduction in operating margins" for the second half while it
introduced new products. The company announced the review of its
semiconductors unit as it reported first-half results broadly in line
with market forecasts. Filtronic posted a first-half pre-tax loss of
1.5 million pounds ($2.19 million), the same as the year-ago figure.
The company also said it would keep its interim dividend at 0.90
pence per share.
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