PARIS (Reuters) - Shares in French digital production company Technicolor (TCH.PA) slumped on Wednesday, which traders attributed to concerns that cost-cutting measures might result in higher-than-forecast restructuring costs.
Technicolor shares were down 17 percent in late session trading, the worst-performer on Paris' SBF-120 index .SBF120.
Oddo BHF wrote in a note on Wednesday that it had met Technicolor’s new finance director Laurent Carozzi, and that the company might end up with higher-than-forecast restructuring charges.
Asked to comment on the matter, a Technicolor spokeswoman confirmed the company was looking to accelerate cost-cutting measures which could lead to those restructuring costs being greater than previously forecast.
Technicolor, which makes video devices, modems, routers and other products, issued four profit warnings last year when it was hit by rising memory chip prices.
The stock, which fell 44 percent in 2017, is down by around 64 percent so far in 2018.
Reporting by Blandine Henault; Editing by Sudip Kar-Gupta