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Wednesday September 13, 8:11 am Eastern Time
Press Release
SOURCE: SCI Systems, Inc.
SCI Announces Lower Earnings Expectations for First Fiscal Quarter
HUNTSVILLE, Ala., Sept. 13 /PRNewswire/ -- SCI Systems, Inc. (NYSE: SCI - news) Gene Sapp, Chairman, CEO, and President of SCI Systems, Inc., announced today that first fiscal quarter results would be lower than expectations due mainly to seasonal weakness in consumer electronics and finished personal computer demand. ``Our original expectations for our September quarter were for sales of $2.3 billion and for $.38 of diluted EPS,'' Mr. Sapp said. ``Given what we are seeing in September, we now estimate sales of $2.0 billion for the quarter. A favorable shift in business mix will result in some operating margin improvement, and we expect $.34 in diluted EPS. Seasonal weakness in demand is having the most significant impact on this quarter, but long lead times of certain components have also delayed the ramp of a number of new programs that contributed to the company's record backlog at the beginning of the quarter. We stand by our earlier guidance for the year of $10.5 billion in sales and between $1.70 and $1.74 in diluted EPS. For the second quarter of fiscal 2001, we expect sales of approximately $2.5 billion and approximately $.42 in diluted EPS.''
Mr. Sapp stated that the company's business outlook for the rest of the year is strong, with excellent bookings this quarter, backlog at an all time high, and numerous new program awards either recently announced or pending. ``We continue to execute our plan, as SCI's end use market mix is becoming more heavily communications driven,'' he said.
Mr. Sapp also stated that the company is pursuing multiple acquisition opportunities, both for OEM divestitures and for strategic purchases of companies and assets. ``We are certainly active on the acquisition front, having recently announced two transactions, and we expect additional announcements before the end of this calendar year,'' he further said.
Certain statements contained in this release may contain forward-looking information with respect to plans, projections or future performance of the Company. By their nature, forward-looking statements involve certain risks and uncertainties including, but not limited to, product and market acceptance risks, the impact of competitive pricing, product development, commercialization and technological difficulties and other risks detailed in the Company's filings with the Securities and Exchange Commission.
SCI Systems, Inc.
SCI Systems, Inc. is a world-class provider of manufacturing and supply chain services with worldwide revenue of $8.3 billion for the most recent fiscal year. SCI delivers supply chain solutions through its global reach, dedication to quality, efficiency, and total commitment to customer service. The Company continues to pioneer new and innovative end-to-end services through its commitment to being the leading e-enabled EMS services provider. ``SCI - The e-EMS CompanyTM is dedicated to providing manufacturing and related services for the new millennium. SCI is publicly traded on the New York Stock Exchange under the symbol ''SCI``. The Company, headquartered in Huntsville, Alabama, operates 39 facilities located in 17 countries. SCI employs more than 32,000 people.
SOURCE: SCI Systems, Inc. |
