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GREENVILLE, SC -- Kemet Corp. today June quarter net income of $3 million on net sales of $114.1 million. The company's net loss before special items was $300,000, with the difference made up by a one-time tax benefit of $3.3 million.

Sales at the maker of passive chips were down 6.8% from last year and up 12.5% sequentially.

BOSTON -- Revenues of Europe-based electronics manufacturing services firms are in recovery, according to a recent research report.

Reed Electronics Research says the European EMS market will reach €47.1 billion by 2009, up 139% from €19.7billion in 2003. Reed estimates the market grew 20.3% in 2004, to €23.7 billion.

One big factor: Eastern Europe. The cost savings gained by moving manufacturing to the emerging region is driving the rest of the continent. Eastern Europe's EMS sales will reach €11billion by 2009, up from an estimated €4 billion this year, Reed reports. Eastern Europe is already the third largest EMS market in Europe, with a 16.8% share.

Germany is the market share leader, at 23%, followed by the U.K. (18.1%) and France (13%).

As of last year, the 10 largest companies made up an estimated 64% of total EMS sales, Reed says.

BOCA RATON, FL -- Celestica has landed a major EMS contract with Artesyn Technologies, a maker of power conversion and embedded boards for server and storage, networking, wireless and telecommunications.

In a statement today, Artesyn said it is closing its manufacturing facility Tatabanya, Hungary, and will award European manufacturing services work to Celestica. Most of the products currently being manufactured in Hungary will be transferred to Celestica's factory in Oradea, Romania, Artesyn said.

This transition is expected to be complete by the end of 2005. The move will save Artesyn an estimated $6 million next year.

Joseph O'Donnell, president and CEO, said, "Our intent to outsource production to Celestica is primarily based on their larger purchasing power and ability to leverage economies of scale from a larger manufacturing base. Additionally, Celestica's global manufacturing structure will open up sourcing options in different geographic locations as we grow our global wireless infrastructure business. The new relationship with Celestica gives us the ability to leverage our cost structure, as well as improve gross margins and overall profitability."