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

To: BWAC who wrote (438)	2/28/2002 11:41:07 AM
From: JakeStraw	Read Replies (1) \| Respond to of 493

RESEARCH ALERT-ABN Amro cuts contract manufacturers biz.yahoo.com LOS ANGELES, Feb 28 (Reuters) - Brokerage ABN Amro on Thursday cuts its earnings estimates for four of the top five U.S. contract manufacturers, saying recent data indicates the recovery in the telecom sector, a key customer, is progressing more slowly than expected. Analyst Keith Bachman lowered estimates for Celestica Inc. (NYSE:CLS), Jabil Circuit Inc. (NYSE:JBL), Sanmina-SCI Corp. (NasdaqNM:SANM) and Solectron Corp. (NYSE:SLR), citing evidence of a delay in the recovery in telecom spending and indications that the recovery may be ``modest at best.'' He said capital spending cuts by major telecom carriers such as BellSouth Corp. (NYSE:BLS) were a bad sign, as was Motorola Inc.'s (NYSE:MOT) outlook for global wireless spending. The $100 billion electronics manufacturing services (EMS) sector derives most of its business from high-volume, low-margin production of products such as cell phones, data and networking products, and video game systems. But Bachman's note was not entirely negative. ``We remain optimistic on the enterprise market and believe that a recovery in (information technology) spending is under way, lead by storage area networking,'' he said. Bachman lowered the calendar 2002 earnings estimate on Celestica to $1.40 a share from $1.49, and cut his 2003 estimate to $1.75 from $1.87. He lowered his 2003 revenue estimate to $12.5 billion from $13.1 billion. For Jabil, Bachman lowered his fiscal 2002 earnings estimate to 40 cents a share from 46 cents, and his revenue estimate to $3.5 billion from $3.6 billion. For 2003, he cut his earnings estimate to 65 cents a share from 76 cents, and his revenue forecast to $4.2 billion from $4.5 billion. For Sanmina-SCI, he cut his fiscal 2002 earnings estimate to 11 cents a share from 15 cents and his revenue forecast to $10.2 billion from $10.5 billion. For fiscal 2003 he cut his earnings estimate to 50 cents a share from 62 cents but left his revenue forecast unchanged. For Solectron, he cut his fiscal 2002 earnings estimate to 18 cents a share from 22 cents, and cut his revenue estimate to $12.5 billion from $12.8 billion. For fiscal 2003, he cut his earnings estimate to 40 cents from 50 cents and cut his revenue forecast to $15 billion from $15.3 billion. He did not change any estimates for the other top-tier contract manufacturer, Flextronics International Ltd. (NasdaqNM:FLEX).