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Strategies & Market Trends : Electronic Contract Manufacture (ECM) Sector -- Ignore unavailable to you. Want to Upgrade?

To: rich evans who wrote (2496)	3/11/2001 9:10:01 PM
From: puborectalis	Respond to of 2542

SOLECTRON TO CUT JOBS: Solectron Corp., a leading contract manufacturer of electronics, is cutting an unspecified number of temporary and permanent jobs because of slowing demand. It told Bloomberg its work force was being reduced globally but would not say how many jobs would be cut or how many people it employed.

To: rich evans who wrote (2496)	3/13/2001 1:58:48 AM
From: Bob Wells	Respond to of 2542

The Yahoo Jabil board started a new board because of all the advertising. It's an ems board. The link is clubs.yahoo.com

To: rich evans who wrote (2496)	3/21/2001 7:14:26 PM
From: Sam	Read Replies (1) \| Respond to of 2542

From TheStreet.com, a little digest of ECM earnings news and analyst ratings: After Tuesday's Close Electronics manufacturer Jabil Circuits (JBL:NYSE - news) posted second-quarter earnings of 21 cents a share, beating Wall Street estimates by a penny. However, the news was a mixed bag because the company also announced an undisclosed number of job cuts and lowered its outlook for the next two quarters. Jabil went on to say that it will take charges of $20 million to $25 million for the third and fourth quarter in an attempt to realign manufacturing with lower-than-expected volumes. Jabil Circuits closed up $1.64, or 9.1%, to $19.76. Quantum DLT & Storage (DSS:NYSE - news) announced that it will post lower-than-expected earnings for its fiscal fourth quarter, citing the continued slowdown in information technology spending as the cause. The California-based company said revenue is expected to decline 20% from the previous quarter, but reassured that "despite the current economic climate, the fundamental strength of our business model remains unchanged," according to CEO Michael Brown. Shares of Quantum closed up 15 cents, or 1.3%, to $12.06. Back to top Analyst actions Oops. They did it again. One day after Credit Suisse First Boston analysts Herve Francois and Mark Hassenberg snipped their earnings targets on Solectron (SLR:NYSE - news), the duo did it again. Only this time, the pair upped their 2001 and 2002 forecasts, while nudging up its price target to $30 from $23. CSFB now calls for the world's largest electronics manufacturing service provider to make 83 cents a share for fiscal 2001, up from the 78 cents called for yesterday. Solectron closed down 17 cents, or 0.9%, to $18.92. Why the change? The pair talked to management, which was probably unhappy about yesterday's revised forecast from CSFB that was well below the rest of Wall Street. Prudential Securities, ING Baring, Robertson Stephens and Bear Stearns all called for the company to make more than 90 cents a share -- far more bullish than CSFB's call. "After further discussion with management, we are adjusting our (ratings), based solely on expected cost savings from Solectron's restructuring program," the pair wrote to investors. Merrill Lynch, which put Solectron's 2001 forecast in a headlock and noogied it down to 86 cents a share, bullied the rest of the electronics manufacturing service sector. Analyst Jerry Labowitz dropped his 2001 and 2001 earnings-per-share forecasts on seven companies in the sector after visiting EMS companies in exotic locales and hearing the bad news from Solectron. "As we highlighted, February was the turning point for the EMS providers as a sharp drop in demand from many original electronics manufacturing customers ... quickly reduced the growth potential in calendar 2001, a trend we now believe could result in a couple of quarters of flat sequential revenue growth," he wrote to investors in a note on Wednesday morning. "Our visit to several EMS providers in Guadalajara and Monterrey last week reinforced our thoughts." Here's a recap of the adjustments made, and how they stack up to current Wall Street consensus, as listed by First Call/Thomson Financial: EMS: Earnings Made Simple Company New 2001 EPS Old 2001 EPS Consensus Celestica (CLS:NYSE - news) $1.72 $1.92 $1.97 C-Mac Industries (EMS:NYSE - news) $1.42 $1.62 $1.68 Flextronics (FLEX:Nasdaq - news) $0.89 $0.91 $0.91 Jabil Circuit (JBL:NYSE - news) $0.76 $0.91 $0.97 Plexus (PLXS:Nasdaq - news) $1.26 $1.38 $1.43 Sanmina (SANM:Nasdaq - news) $1.19 $1.34 $1.38 SCI Systems (SCI:NYSE - news) $1.29 $1.36 $1.41