Flextronics Swings to Profit in 2Q
Tuesday October 24, 4:40 pm ET
Flextronics Swings to Profit in 2Q on Strong Sales, Charges in Year-Ago Quarter
NEW YORK (AP) -- Flextronics International Ltd., the Singapore-based contract manufacturer of electronics, on Tuesday said it swung to a profit in the fiscal second quarter as sales rose across its business segments.
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Net income totaled $185 million, or 31 cents per share, compared with a loss of $2 million, or break-even per share, a year ago. Excluding one-time gains plus certain recurring nonoperating expenses such as amortization, second quarter net income rose 15 percent to $117 million, or 20 cents per share, from $101 million, or 17 cents per share a year ago.
The company sold its software development business to affiliate of Kohlberg Kravis Roberts & Co. in third quarter, resulting in a pretax gain of $181 million. By contrast the company posted a pretax loss of $26.9 million from divesting operations a year ago.
Sales increased 23 percent to $4.7 billion from $3.81 billion a year ago.
Analysts surveyed by Thomson Financial were expecting the company to report earnings of 20 cents on sales of $4.8 billion.
Flextronics, which provides design engineering, manufacturing and other services to major electronics companies such as Dell, Hewlett-Packard, Microsoft and Siemens. The company said growth accelerated across all of its businesses in the quarter.
For the third quarter ending in December, Flextronics expects sales to grow 25 percent to 30 percent to $5.1 billion to $5.3 billion, while earnings from continuing operations are seen rising 10 percent to 15 percent to 22 cents to 23 cents per share.
Analysts expect the company to report a profit from continuing operations of 23 cents per share on sales of $5.3 billion. |
