A reality check from Solectron ...
SINGAPORE, Nov 28, 2001 (AP WorldStream via COMTEX) -- Microchip maker
Solectron Corp. said Wednesday that its sales would be less than dlrs 16 billion
for the year ending Aug. 31 and that the electronics industry's slowdown could
last for another year or two.
Sales at the Milpitas, California-based company were dlrs 18.7 billion last
fiscal year.
Solectron's chairman, president and chief executive, Koichi Nishimura, said the
outlook remains cloudy in the face of the global economic slowdown, and the U.S.
recession.
"The market contracted, so we did tell Wall Street that based on this quarterly
run-rate, we'd be below the bottom of the (full-year) guidance, which was made
when the market was still booming," Nishimura said.
In August, Solectron said it expected sales of dlrs 16 billion to dlrs 18.5
billion for fiscal 2002.
Nishimura said the slowdown could last longer than two years for sectors such as
telecommunications, which are struggling to deal with an overabundance of
factories and other facilities and workers. Consumer electronics, however, could
pick up in a year or less, depending on whether retail sales pick up in the face
of the slowdown, he said.
Nishimura said forecasts for the quarter ending Nov. 30 was unchanged from
earlier projections, of dlrs 2.8 billion to dlrs 3.2 billion.
The company counts leading electronics original equipment manufacturers as its
customers, such as Nokia Corp., serving segments such as mobile phones, personal
computers and fax machines.
Regards
Stephen |
