Plexus Sees Life After Juniper PDF Print E-mail
Written by Mike Buetow   
Monday, 09 December 2013 10:06

NEENAH, WI -- Plexus appears to be weathering the impending loss of longtime top customer Juniper Networks. The EMS company's fourth-quarter operating margin was 5.1%, its highest mark since March 2008, and management expects margins to continue to top 5% in the coming quarters.

Facility consolidation in Neenah, where the EMS firm is moving three plants into one, and higher capacity utilization will offset flat sales, company executives told Deutsche Bank.

The firm is currently at 70% utilization, DB reported.

Sales to Juniper fell to $42 million in the most recent quarter, down from $86 million in the June period. Despite the dropoff, Juniper will be Plexus' largest customer for its current fiscal year, at an estimated $284 million.

End-market demand is expected to be flat, Plexus said, but the expectation is new programs will overcome the loss. Potential growth is seen in the aerospace, semiconductor equipment and healthcare segments.

Regionally, Plexus sees opportunities in Brazil, where current customer GE Healthcare has operations, and Europe.



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