Electricals distributor Premier Farnell is to sell its industrial products division Akron Brass and stop direct operations in Brazil after it forecast a fall in first-half adjusted operating profit.
The company, which fell out of the FTSE 250 after difficult trading, said the move will deliver £4m in benefit this year.
Premier Farnell said in July that it expected a 10 per cent decline in first-half adjusted operating profit after sales growth per day in its main North American and UK markets slowed in the second quarter.
The group, which started out as a radio parts seller in 1939, said it now expects full-year adjusted operating profit to be between £73m and £77m.
The company reported adjusted operating profit of £88m last year.
Premier Farnell’s Akron Brass business makes and sells high- performance fire-fighting equipment for fire truck manufacturers, public fire services and industrial facilities.
Akron Brass accounted for about 7.5 per cent of the company’s total revenue in the first half.
Premier Farnell makes and sells the Raspberry Pi – a mini, low-cost computer its founders created to help millions of people get online and learn to code.