Integrator Pace Impacted by WD Suspended Production

Following the recent announcement by Western Digital Corporation that it has suspended production of hard disk drives at its manufacturing facilities in Thailand as a result of severe flooding, Pace plc has completed an initial assessment of the potential impact on its 2011 business.

Because Western Digital is the major supplier of hard disk drives to Pace, this will negatively impact expected shipments of products with hard disk drives from this supplier during the remainder of this year.

Pace estimates the worst case impact on 2011 operating profit to be $9.5 million, before taking account of possible mitigating actions. As a result, Pace’s operating profit for 2011 is now likely to fall below previous guidance of $150 million – $170 million.