FRAMINGHAM (02/16/2000) - Thomas & Betts Corp., an electronics components manufacturer in Memphis, blamed problems with a new Internet-based ordering system for $20 million in shipment delays and a nearly 50 percent drop in 1999 income.
"We chose to transition to those new systems at a time when our organization was already engaged in a massive cost-reduction program, integration of acquisitions and preparation for the Y2k changeover. That caused missteps," said CEO Clyde R. Moore in an earnings statement released today.
In addition to the $20 million in delayed shipments, the company said its failure to launch its new Thomas & Betts Order Processing System, or TOPS system, until fiscal 2000 led to nearly $24 million in lost sales and $18 million in increased freight and labor charges for the year.