Circuits Assembly Online Magazine - Current Issue

News

ST. PETERSBURG, FL - Jabil Circuits Inc. will close a recently acquired factory next month and cut 83 workers, a news report said today.

The Rocklin, CA, manufacturing plant, acquired by Jabil from Varian Electronics in February, employs 90, but seven employees are expected to be reassigned within the company.

Jabil purchased the Rocklin site as part of an $195 million acquisition of several factories from Varian.

MILPITAS, CA -- Solectron Corp., a leading electronics manufacturing services provider, will layoff 3,500 workers and take up to $115 million in restructuring charges, 90% in cash.

The company will also close about 850,000 sq. ft. of facilities in Europe and North America.

The company said that it estimates the restructuring plan will be completed by the end of its fiscal third quarter of 2006. Most of the 3,500 employees to be laid off are in locations in Europe.

SPOKANE, WA -- EMS provider Key Tronic Corp. today announced fiscal third quarter revenue of $49.7 million, up 33% from last year.

For the quarter ended April 2, the company reported net income of $852,000, up 661% from last year and up 74% from the second quarter.

In a press release, Jack Oehlke, president and chief executive, credited growth to higher sales to existing customers for specialty printer accessories and components, and gaming technology.

The firm said it will add capacity in China and Mexico. "[We] plan to expand capacity in Mexico by buying the building adjacent to our existing facility in Juarez during the fourth quarter of fiscal 2005," Oehlke said. "We also are investing in our worldwide printed circuit board operations to ensure compliance with new environmental regulations."

Key Tronic guided for fiscal fourth quarter revenue to increase five to 10% sequentially and earnings of $0.08 to $0.12 per share.

Key Tronic will host a conference call today to discuss its financial results at 2:00 PM Pacific (5:00 PM Eastern). A broadcast of the conference call will be available at www.keytronic.com under "Investor Relations" or by calling 800-218-0204 or +1 303-262-2211. A 48-hour replay will be available by calling 800-405-2236 or +1 303-590-3000 (Reservation No. 11027377). A replay will also be available on the Company's Web site.

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