Jan 24 (Reuters) – Contract manufacturer Flextronics Inc
forecast fourth-quarter results below Wall Street
expectations, blaming an uncertain economy, sending shares down
8 percent after the bell.
“It is clear that the macroeconomic environment is
challenging with limited visibility and many economic risks
remain,” Chief Executive Mike McNamara said in a statement.
The company said it expects fourth-quarter adjusted earnings
of between 11 cents and 15 cents per share, on revenue of $5
billion to $5.3 billion.
Analysts were expecting adjusted earnings of 20 cents per
share, on revenue of $5.69 billion, according to Thomson Reuters
I/B/E/S.
Flextronics’ customers include Apple Inc, Microsoft
Corp, Hewlett-Packard Co Xerox Corp and
Research In Motion .
In the fourth quarter, the company expects to take an
additional pre-tax restructuring charge of between $100 million
and $125 million, which comprises primarily of employee
severance and benefit costs.
Net income more than halved to $32 million, or 5 cents per
share, in the third quarter, from $106 million or 15 cents per
share, a year earlier.
Revenue fell about 18 percent to $6.12 billion.
Excluding items, the company earned 21 cents per share.
Analysts had expected adjusted earnings of 21 cents per
share, on revenue of $6 billion.
In the third quarter, Flextronics took a pre-tax
restructuring charge of about $103 million, of which $21 million
of cash charges were primarily related to employee severance and
benefits and $82 million of non-cash asset impairment charges.
Flextronics shares were down about 8 percent at $6.20 after
the bell. They closed at $6.72 on the Nasdaq on Thursday.
