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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Pink who wrote (16344)	2/25/2002 10:48:26 PM
From: StockDung	Respond to of 18998

Flextronics 4th-Qtr Profit to Fall Short of Forecasts (Update1) By Samantha Zee Singapore, Feb. 26 (Bloomberg) -- Flextronics International Ltd., the second-largest maker of electronics for brand-name companies, said fiscal fourth-quarter profit will fall short of forecasts because of weak demand from telecommunications companies. The company's shares dropped as much as 8.1 percent. Profit in the period ending next month will be at the lower end of the company's previous forecast of 13 cents to 16 cents a share, Flextronics Chairman and Chief Executive Michael Marks said on a conference call. Spending by customers that sell telecommunications equipment has declined and is ``expected to deteriorate,'' Marks said. The company also has been hurt by slack sales in its printed circuit board and test business. There are ``a couple of actions that may adversely affect the March quarter further,'' Marks said. The electronics manufacturer will make changes to some of its businesses, including telecommunications, and is likely to have ``some additional severance costs'' to report in the quarter. He didn't elaborate. The company already has sought to cut costs by firing workers, closing plants and moving production to cheaper sites around the world. In the past year, Flextronics has won contracts to assemble Microsoft Corp.'s Xbox video-game console and produce headsets for Swedish mobile-phone maker Ericsson AB. Flextronics shares fell as low as $14.70 in after-hours trading following the reduced forecast. The stock of the Singapore- based company rose 32 cents to $15.99 during regular trading and has dropped 33 percent this year. Excluding certain costs, Flextronics was expected to earn 15 cents a share in the current quarter, the average estimate of analysts polled by Thomson Financial/First Call.