Plant Closings Ahead, Flextronics CEO Says PDF Print E-mail
Written by Mike Buetow   
Monday, 22 October 2012 10:11

SAN JOSE -- Stung by a large drop in revenue and trying to meet stated goals for margins, Flextronics is planning another round of layoffs and factory closings.

On a conference call with analysts, CEO Mike McNamara said the world's second largest EMS company expects overall revenues to drop as much as 6% sequentially in the current quarter, in part due to the loss of its largest smartphone customer, RIM.

He said the contract printed circuit board assembler would reduce its footprint as a result to improve its cost structure.

"I don't think we're ready yet to put a number on it. But ... we will certainly do some organizational restructuring. We will certainly do some facility consolidation. ... [W]e think there's ways to simplify and streamline the efficiency of the organization ... which also will contribute to more productivity." McNamara did not specify which regions would see reductions, although one of its Shanghai area facilities is being shuttered, with production relocated to Suzhou.

Looking to the March quarter, McNamara said Flextronics expects margins to improve, but slower sales to continue to linger.

Flextronics did say it was raising its annual capital expenditure estimates by some $50 million to $100 million, to a range of $400 million and $500 million.


On Oct. 22, chat with Mike Buetow about PCB West and SMTAI at PCB Chat.




Eastern-US: China’s New Competitor?

Parity emerges among EMS Factories from Asia, Mexico and the US.

For the first time in years we see parity in the Eastern US among EMS factories from Asia, Mexico and the US. This EMS market condition will permit American OEMs (the EMS industry refers to OEMs as customers) to have more EMS pathways to choose from. Now more than ever, such EMS assignments will require deeper investigation relating to the OEMs’ evaluation of manufacturing strategies.

The Human Touch

For those who count on the electronics industry for big feats, it’s been a remarkable couple of years.



Advances in Concentration Monitoring and Closed-Loop Control

Contaminated bath water skews refractive index results. New technology can accurately measure aqueous cleaning agent concentration.

Circuits Disassembly: Materials Characterization and Failure Analysis

A systematic approach to nonconventional methods of encapsulant removal.





CB Login



English French German Italian Portuguese Russian Spanish


Techspray Introduces Fine-L-Kote High Viscosity AR Conformal Coating
Fine-L-Kote high viscosity AR acrylic conformal coating reportedly widens the process window and flexibility. Can use as-is for dipping or thin down for spray systems. Is for selective spray systems...