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.
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.
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.
About Key Tronic
For the three months ended March 31, the firm reported revenue of $3.61 billion, down 4% from $3.77 billion last year. The company cited lower demand for handsets, saying handset sales fell $480 million in the fourth quarter from the prior period.
The quarterly profit rose to $74.2 million, from $16 million a year ago.
The analyst consensus was sales of $4 billion.
For
the fiscal year, Flextronics recorded a profit of $339.9 million on sales of $15.91 billion.
Flextronics guided for sales of $3.7 billion to $3.9 billion for the July quarter.
For fiscal 2006, the company expects sales of $17 billion to $17.5 billion, which would be a record for EMS/ODM firms. Analysts forecast sales of $19 billion.
Dover Technologies is a $1.5 billion subsidiary of Dover Corp. and the parent of ECT. Its companies include Universal Instruments Corp. and DEK.
Van Loan, who has been with ECT since 1981, will report to outgoing president and current chief executive John Pomeroy. That won't last long: Pomeroy will retire within the next year.
Van Loan will also take over the responsibilities of Gerhard Meese, executive vice president of Dover Technologies, who is retiring in the same time frame.
In a press statement Dover CEO Ron Hoffman said, "Dave has done an excellent job of
building Everett Charles into the premier test interconnect equipment supplier
to the circuit board and back end semiconductor markets. He has displayed
great strategic vision in guiding his company and will bring his high energy
level and proven track record of delivering outstanding operating results to
his new role."
FRAMINGHAM, MA - Following a record quarter of worldwide shipments, the mobile phone market slowed slightly in the first quarter due to expected seasonality. According to IDC, worldwide mobile phone shipments totaled 174.3 million units in 1Q05, falling 12.6% from the fourth quarter but increasing 9.2% year over year.
Nokia maintained its no. 1 position
with a 30.9% share despite enduring the
largest sequential decrease in shipments. Motorola once
again captured second place with further penetration into Europe and
leadership in the Americas. Samsung, the only company among the leading
vendors to post a sequential gain, locked up third place and regained
its momentum to catch up with Motorola after experiencing declining
shipments in 2004.
Holding in fourth place is LG Electronics, marking the company's third consecutive quarter of shipments greater than ten million. Sony Ericsson beat out Siemens for fifth place by just 100,000 units.
"Most vendors have increased their shipment levels from a year ago, showing that despite a slight downturn from the previous quarter, consumer demand is still strong and vendors are prepared to meet that demand with a broad selection of phones," said Ramon Llamas, research analyst for IDC's Mobility Group. "Vendors have been stretching the limits on what phones can do and what they are supposed to look like. Telephony is still at the core of the mobile phone, but now it can be wrapped with features to satisfy different consumer tastes. What were once considered high-end features are now standard on many low-cost phones as vendors battle to gain market share and consumer attention."
| Vendor Highlights | more |
- Nokia - The Finnish company captured 30.9% of the market, resulting in year-on-year growth of 20.4%, but a sequential decline of 18.6%. Driving revenue and average selling price for the company was its line-up of high-end enterprise and multimedia phones. At the same time, Nokia sustained momentum in Europe and Asia, but lost ground in the Americas.
- Motorola - Despite a sequential decline of 9.7%, Motorola closed out the first quarter of 2005 with 16.5% market share and year-on-year growth of 13.4%. The company announced 27 new models for the year including the SLVR and PEBL, variations of the popular RAZR V3. The company also renewed its effort to bring more enterprise devices to the market by investing in the Java+Linux platform for smartphones.
- Samsung - The only company within the top five to post sequential growth (16.1%), Samsung captured 14.1% market share and year-on-year growth of 22.5%. By boosting shipments in the first quarter while other vendors decreased shipments after a busy fourth quarter, the Korean company was able to regain momentum to catch up with Motorola, shrinking the difference from ten million units last quarter to slightly more than four million units this quarter.
- LG Electronics - Securing its spot as the number 4 vendor with 6.4% market share, LG saw year-on-year growth of 26.9% and a sequential decline of 20.1% from 4Q04. The company reported that more than half its shipments went to North America, the largest proportion of any other vendor in the top five.
- Sony Ericsson - After a brief hiatus out of the top five, the 50-50 venture returned to wrest fifth place away from Siemens. The company captured 5.4% market share, declining 25.4% from the previous quarter but growing 6.8% from a year ago. The company released few new products to keep up with its maturing product line, but announced a lineup of high end and specialty phones to come out later in the year.
| Top 5 Vendors, Worldwide Mobile Phone Shipments and Market share, 1Q 2005 (Preliminary) | more |
| Rank | Vendor | 1Q 2005 Shipments | 1Q 2005 Market share |
| 1 | Nokia | 53,800,000 | 30.9% |
| 2 | Motorola | 28,700,000 | 16.5% |
| 3 | Samsung | 24,500,000 | 14.1% |
| 4 | LG Electronics | 11,100,000 | 6.4% |
| 5 | Sony Ericsson | 9,400,000 | 5.4% |
| Others | 46,800,000 | 26.9% | |
| Total | 174,300,000 | 100.0% |
Source: IDC, April 27, 2005
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