Apr 25, 2001
But the Nasdaq-listed company, which has manufacturing operations around the world, maintained that it was being boosted by an increased level of outsourcing because of the market's downturn.
Flextronics said companies' decisions to outsource chip manufacturing in the current economic environment would lead to a robust year in 2002. The company said it anticipated revenues over the next several quarters to fall in line with the previous quarters.
"Our outlook is much stronger than that of our competitors," said Michael Marks, chairman and chief executive of Flextronics.
Furthermore, Mr Marks said Flextronics planned to reduce overall capacity by about 15 per cent to bring it in line with revenue expectations and maintain profitability. The company took a one-time charge of $276m in the first quarter to account for the restructuring.
The company reported fourth-quarter earnings of $109m, or 22 cents per share - two cents off analysts' estimates of 24 cents per share.
Net sales were $3.1bn, up from $2.2bn in the same quarter last year. For 2001, net sales reached $12.1bn, from $6.96bn in 2000.
Flextronics took a one-time restructuring charge of $276m in the fourth quarter and said it expected to take a $10m-$20m charge in the first quarter of 2002 which would finalise the restructuring plan.
Shares in Flextronics closed down 28 cents to $22.17 on Tuesday.
