Oct 26, 2001
Singapore-based Flextronics reported income of $73 million, or 15 cents per diluted share, excluding amortization and one-time charges. That compared with $104.8 million, or 22 cents, in the year-earlier period.
The company reported a net loss of $329.8 million, or 69 cents per diluted share, compared with net earnings of $49.9 million, or 10 cents, a year ago.
The average estimate of 25 brokers surveyed by Thomson Financial First Call was for earnings of 16 cents, with a range of 15 cents to 17 cents.
Revenues totaled $3.2 billion versus $3.1 billion a year ago.
Aside from eliminating 10,000 jobs, a cost-saving move, Flextronics will also cut 4 million square feet of manufacturing space, or about 20 percent of its total.
The company took a $399 million charge in the quarter to compensate for the cuts, up from the previously announced charge of $380 million.
``We believe all these restructuring charges are behind us,'' Michael Marks, chairman and chief executive, said in a statement.
On Oct. 2, Flextronics reaffirmed its second-quarter earnings guidance of 15 cents to 18 cents on revenues of about $3.2 billion.
Late in the quarter, Flextronics began manufacturing the new Xbox video game console for Microsoft Corp. Under the deal, as many as 150,000 units will be shipped each week for the rest of the year, and could be worth as much as $1 billion a year to Flextronics, analysts have said.
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