Friday, March 21, 2003
Solectron Corp. today said it intends to take restructuring charges of about $300 million over the next several quarters to consolidate facilities and reduce the workforce in Europe and North America.
This charge is incremental to the approximately $20 million in charges for actions previously announced but not yet taken, the EMS company said.
Milpitas-based Solectron also reported fiscal second-quarter sales of $2.8 billion, in line with the company's guidance for sales of $2.8 to $3 billion.
That compares with sales of $3 billion in the same quarter last year and $3.1 billion in the first quarter of fiscal 2003.
In the quarter ended Feb. 28, the company recorded a net loss of $111 million, or 13 cents per diluted share, compared with a net loss of $71 million, or 9 cents per diluted share, in the previous quarter and a net loss of $126 million, or 15 cents per diluted share, in the second quarter of last year.
"In the near term, we are dealing with several factors: End-markets remain weak, competition for new business is intense, and we will see the impact of the planned wind-down of our optical business with Lucent, as announced last fall.
"Considering these factors, our third-quarter guidance is for sales of $2.6 to $2.9 billion, and for pro forma diluted EPS, excluding restructuring and impairment and other unusual items, of a range from a 4-cent loss to a 1-cent loss."
By: DocMemory
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