Sanmina-SCI CFO says no more plant closings this year

The chief financial officer of Sanmina-SCI Corp. (NasdaqNM:SANM) said on Tuesday the company does not plan further factory closings this year despite the large amount of unused capacity still weighing on contract manufacturers of all types of high-tech products."We don't anticipate any more plant closings," said Sanmina-SCI CFO Rick Ackel. "We think we've made the cuts we need to make."However, if the economy remains soft, that decision could be revisited, Ackel said at a Banc of America Securities technology conference in San Francisco.Contract manufacturers like Sanmina-SCI have been strapped throughout the tech downturn with too much unused capacity as demand for high-tech products plunged.Sanmina-SCI last month entered into a major deal to help raise output on some of its assembly lines: a $3.6 billion, three-year contract to take over manufacturing of some lower-priced computers for International Business Machines Corp. (NYSE:IBM)Sanmina-SCI, which also builds products for Hewlett-Packard Co. (NYSE:HPQ), in January projected its current second-quarter revenue to be about $2.3 billion to $2.5 billion, and cash earnings per share to be between a loss of 1 cent to a profit of 1 cent before merger, restructuring and other charges.Sanmina-SCI, formed in a $4.5 billion, December 2001 merger between Sanmina Corp. and larger rival SCI Systems Inc., last month posted a quarterly profit in line with Wall Street expectations on a near 5 percent rise in revenues.Sanmina-SCI posted a profit of $1.4 million, or 1 cent per share, for its fiscal first quarter ended Dec. 28, compared with a pro forma profit of $7.3 million, or 3 cents per share, a year earlier.First-quarter results from the year-earlier period were adjusted to reflect the combined performance of Sanmina and SCI Systems.The rival of contract manufacturers Flextronics International Ltd. (NasdaqNM:FLEX) of Solectron Corp. (NYSE:SLR), had revenues of $2.54 billion, compared with $2.41 billion a year earlier.Excluding results for SCI Systems, Sanmina-SCI reported a net loss of $7.5 million, or 1 cent per share, compared with a loss of $45.2 million, or 12 cents a share a year earlier. Source: Reuters