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Technology Stocks : Solectron -- Ignore unavailable to you. Want to Upgrade?

To: xtahce who wrote (429)	6/18/2001 4:16:23 PM
From: JakeStraw	Read Replies (1) \| Respond to of 493

Solectron Reports Third-Quarter Results, Provides Guidance for Fourth Quarter biz.yahoo.com MILPITAS, Calif., June 18 /PRNewswire/ -- Solectron Corporation (NYSE: SLR - news), the world's leading provider of electronics manufacturing and supply-chain management services, today reported cash earnings per share, excluding restructuring charges, of 12 cents in its fiscal third quarter, within the range of guidance the company provided. (Photo: newscom.com ) Sales in the quarter that ended June 1 were $4 billion, up 9.3 percent from $3.6 billion in the year-earlier quarter and representing a 26.5 percent decrease from $5.4 billion in the second quarter of fiscal 2001. Solectron incurred a net loss under U.S. Generally Accepted Accounting Principles of $186 million, or 28 cents per diluted share*, compared with net income of $119.7 million, or 19 cents per diluted share, in the same period of last year. Excluding restructuring charges, the company had third-quarter earnings of $5 million, or 1 cent per diluted share. In the quarter, Solectron continued to be affected by the global economic downturn and resulting declines in demand from customer end-markets. A restructuring plan initiated in the quarter led to a $285 million third-quarter pre-tax charge to accelerate long-term strategic actions to prepare the organization for a re-acceleration in business growth. ``In the third quarter, demand from our OEM customers declined significantly as end-market activity slowed across all sectors. By responding rapidly to the slowdown, we were able to deliver EPS within our range of guidance,'' said Koichi Nishimura, Solectron chairman, president and chief executive officer. ``While the short-term outlook remains uncertain, I am optimistic about the long-term prospects for our business as the OEM outsourcing trend continues.'' Restructuring Activities In the quarter, Solectron launched a restructuring plan to consolidate facilities, relocate certain capabilities and refine the value proposition of a number of sites. The plan currently is expected to result in charges to earnings of $335 million, with $285 million recorded in the third quarter and the balance expected to be recorded in the fourth quarter. The charges primarily cover the costs of eliminating equipment, writing off or terminating leases on property, and reducing the company's work force. Through its restructuring actions, the company said it is accelerating key initiatives of its long-range strategic plan. Fourth-Quarter Guidance Noting that its forward-looking visibility is limited, the company issued guidance for its fiscal fourth quarter, which ends Aug. 31. Sales are expected to range from $3 billion to $3.5 billion, implying full-year sales growth of 28 to 32 percent. Cash EPS, before restructuring charges, is expected to range from 5 to 9 cents. The company noted that it will continue to adjust as necessary to changing market conditions and would, if business trends warrant, consider further restructuring actions.