FLEX (run/win $38) Electronics manufacturer flexes earnings muscle
By Bloomberg News
January 18, 2001, 3:30 p.m. PT
SINGAPORE--Flextronics International, the second-biggest contract manufacturer of electronics, said fiscal third-quarter profit rose 42 percent as acquisitions and contract wins helped boost sales.
Net income for the quarter ended Dec. 31 rose to $67.8 million from $47.8 million a year earlier, spokeswoman Danielle Hess said. The company didn't provide per-share profit figures. Sales rose 65 percent to $3.24 billion from $1.97 billion.
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Flextronics and other electronics manufacturing companies produce devices such as cell phones and pagers for companies including Nokia, Cisco Systems and Lucent Technologies. Flextronics is benefiting as customers hire out more production to cut costs and focus on new products.
The company has been one of the most aggressive buyers of other businesses in its industry, helping it leapfrog rival SCI Systems to become the industry's second-biggest company, in terms of revenue, behind Solectron.
Flextronics bought Singapore-based rival JIT Holdings for $640 million in November. It agreed to buy Chatham Technologies in July for $589.7 million in stock and purchased rival DII Group for $2.4 billion in stock in April.
Flextronics is based in Singapore, although most executives, including Chief Executive Michael Marks, work at the company's San Jose, Calif., offices.
Excluding acquisition-related costs, profit would have more than doubled to $122.7 million, or 26 cents a share, from $58.5 million, or 15 cents, a year ago, Flextronics said. On that basis, the company was expected to earn 25 cents a share, the average estimate of analysts polled by First Call. The number of shares outstanding during the quarter rose 25 percent to 478.7 million from 384 million a year ago.
In the most recent quarter, Flextronics had expenses of $54.9 million related to the acquisition of JIT Holdings and for goodwill and amortization, the company said. It had $10.7 million in goodwill- and amortization-related costs in the year-earlier quarter.
Copyright 2001, Bloomberg |
