Pace warns on Thailand floods impact

Pace, the set-top box manufacturer, has warned that its profits are set to be hit by hard drive shortages caused by the flooding in Thailand.

Many firms, including Pace's main supplier Western Digital, have hard drive factories in Thailand.

Pace said its profits next year would be down by up to $50m (£37.7m) and the floods would knock $9.5m off profits this year.

The news sent shares in the company down by 14%.

Pace chief executive Neil Gaydon said: "In common with the broader consumer electronics industry, the immediate impact to our business of the Thailand flooding is significant, requiring diligent management."

The company had already lowered its forecasts earlier in the year due to the effect of the tsunami in Japan.

The firm's share price has now dropped by three-quarters in the past year.

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