Flextronics stands by fourth-quarter targets, reports reuters
Mar 05, 2004
Flextronics International Ltd. (NasdaqNM:FLEX) yesterday left its forecast for fiscal Q4 2004 unchanged, saying its business has returned to more predictable patterns, according to a report by Reuters.The report went on - Flextronics said in January it expected fourth-quarter earnings per share before items of 9 cents to 11 cents, on revenue of $3.40 billion to $3.60 billion."Our business has settled down into a much more predictable pattern," said Chief Executive Michael Marks on a conference call to update analysts on the progress of its quarter ending in March, adding that he was leaving the guidance unchanged.Analysts currently expect Singapore-based Flextronics to have a per-share profit before items of 11 cents, on average, within a range of 10 cents to 12 cents, on revenue of $3.55 billion, according to Reuters Research.Overall, however, Marks said he was encouraged by Flextronics' performance so far in the quarter. "Consumer products have remained relatively strong," Marks said, referring to personal computers and other products that the company makes for its customers.He also said that the telecommunications industry continues to get better, as carriers upgrade and cash flow at these companies improves. "Purchases from IT (information technology) companies are flat to slightly increasing," Marks said, adding that its printed circuit board business has stabilized and continues to be profitable.Marks said that its plants in China are "quite full," and that the company is adding capacity at four major Asian sites.Shares of Flextronics rose 46 cents, or 2.5 percent, to close at $18.70 on the Nasdaq. In the last three months, the stock has risen 24 percent.