Knowles Announces Preliminary First Quarter 2020 Results and Sets Date to Review Detailed Results

Knowles Corporation (NYSE: KN), a market leader and global provider of advanced micro-acoustic, audio processing, and precision device solutions, today announced preliminary results for the quarter ended March 31, 2020. The Company expects the COVID-19 pandemic to have a greater impact than originally anticipated when it provided its first quarter outlook on February 4, 2020.

• Revenue for the first quarter of 2020 is expected to be $163 million.
• The Company expects a diluted loss per share from continuing operations for the first quarter of 2020 to be ($0.16) to ($0.12).
• On a non-GAAP, continuing operations basis, diluted earnings per share is expected to be $0.00 to $0.04.
• These preliminary financial results are subject to completion of the Company’s customary quarterly closing and review procedures.

“In the first quarter of 2020, COVID-19 caused significant disruptions within Knowles’ manufacturing operations across Asia which negatively impacted plant productivity within our Audio segment,” said Jeffrey Niew, president and CEO of Knowles. “We have made progress in returning our China facilities to more normalized operations but saw lower-than-planned labor productivity and factory utilization in Malaysia and the Philippines throughout the first quarter.”

“While our manufacturing facilities in the U.S. are currently operating as essential businesses in states that have issued “shelter-in-place” orders, COVID-19 has resulted in limited disruptions and we have instituted measures that balance employee safety with meeting the needs of our customers. As we navigate these challenges globally, we continue to focus on the health and safety of all our employees, customers and partners worldwide.”

“We anticipate that our strong balance sheet and diversified customer base and end markets will enable us to weather this difficult period and allow us to continue to invest to support future growth when markets return to a more normalized level,” continued Niew.

The Company will provide a more detailed review of its financial results and business when it reports its first quarter 2020 results on May 4. There will be no conference call associated with this press release.

Webcast and Conference Call Information

Investors can listen to a live or replay webcast of the Company’s quarterly financial conference call at http://investor.knowles.com. The live webcast will begin on May 4, 2020 at 3:30 p.m. Central time. The webcast replay will be available after 7:00 p.m. Central time that day.