Some good news.
Stan
11/27 18:20
Flextronics CEO Reiterates 3rd-Qtr Profit Estimate (Update2)
By Samantha Zee
quote.bloomberg.com
Singapore, Nov. 27 (Bloomberg) -- Flextronics International Ltd., the No. 2 maker of electronics for brand-name companies, said fiscal third-quarter profit will meet forecasts as it wins business from new customers including Sun Microsystems Inc.
``We are occasionally winning big deals with companies that we didn't have big relationships with in the past,'' including Sun, Juniper Networks Inc. and EMC Corp., said Chairman and Chief Executive Officer Michael Marks on a conference call. Flextronics shares rose as much as 3.3 percent on his comments.
Sales are rising as more equipment makers, seeking to reduce costs, hire firms like Flextronics to build their products, freeing clients to focus on design and marketing. Flextronics is firing workers and closing plants as it moves to cheaper sites around the world to accommodate customers' needs and cut expenses.
The Singapore-based company last month said earnings in the period ending in December will be 15 cents to 18 cents a share on revenue of $3.3 billion to $3.5 billion. Analysts on average expect Flextronics to earn 17 cents on sales of $3.4 billion, according to a Thomson Financial/First Call poll.
Revenue was ``a record last quarter and should be this quarter,'' Marks said. ``There is still a relatively ragged and weak end-market, but we are getting the company in a stronger and more competitive shape.''
Flextronics shares rose as high as $26.40 in after-hours trading. They gained 73 cents to $25.55 in regular U.S. trading before the conference call began. The stock has fallen 10 percent this year.
In last year's fiscal third quarter, the company had net income of $67.8 million on sales of $3.24 billion. |
