News
On a non-consolidated basis, monthly net revenue amounted to $44.1 million, up 28% sequentially and down 28% year-over-year.
USI, which is the world’s 24th largest EMS company according to the Circuits Assembly Top 50, reported electronics packaging and EMS sales of $23.4 million, or 24% of total revenue. The figure was up 24% sequentially and down 39% from the same period last year.
Computers and peripherals showed net revenue of $26.2 million (27% of total sales), up 11% sequentially and down 48% year-over-year.
Communications also accounted for 24% of revenue, at $22.9 million, up 2% sequentially and down 29% year-over-year.
TORONTO – EMS provider SMTC Corp. reported 2008 fourth-quarter revenue of $61.1 million, up 1.6% sequentially and down 8.5% year-over-year.
EL SEGUNDO, CA — After years of singlehandedly powering the robust growth of the global electronics manufacturing services business, Foxconn (Hon Hai) grew marginally in 2008, and the top-tier EMS market contracted, according to preliminary market-share results from iSuppli Corp.
The company, the parent of Alpha Metals and Enthone, reported trading profits up 11% to ₤216.3 million ($298.3 million), and pre-tax profits climbed 18% to ₤176.3 million ($243.1 million).
The electronics division saw a year-over-year revenue increase of 11% to ₤620 million ($854.9 million) at reported exchange rates.
For the year, assembly materials sales fell 10% to ₤382 million (US$526.8 million) on an increase in metal prices, especially tin and silver. Chemistry sales dropped 9% to ₤238 million (US$328.2 million) on the sharp decline in the electronics and automotive markets.
Nevertheless, the fourth-quarter slide has continued into the first quarter, and Cookson plans to reduce its overhead by $55.2 million.
Key
findings include:
· 69% of OEMs believe that supply chain management can be a source of competitive advantage; 31% believe that their supply chain is more nimble than that of their competitors.
· 53% plan to geographically relocate at least some of their outsourced production in the next two quarters; 50% plan to move some production to another EMS provider during that same period.
· 31% report being “Very Concerned” that their EMS provider will be unable to meet their delivery commitments in the coming year based on financial difficulty; less than 2% of respondents report being concerned that their EMS provider may be acquired by another company.“The results of the OEM survey are consistent with what we are hearing from current and prospective customers,” said Courtney Ryan, senior vice president, Global Business Units at Jabil, in a press release issued by Riverwood. “OEMs continue to seek opportunities to reduce cost and improve competitiveness – but with a renewed focus on the supply assurance and financial stability of their EMS partners.”
Gary R. Fairhead, president and chief executive, said, "As noted in our last press release on Dec. 9, we experienced a drop in revenue of approximately 30% the first week of our third quarter when compared to the prior month's run rate, and that trend continued through the entire quarter. Current indications are that our revenue will continue at approximately the same rate for the short term. Beyond that, the uncertainty associated with the worldwide economy in general and the US economy specifically make forecasting close to impossible. All of our customers' markets remain volatile, and I believe we will continue to see lower revenues and volatility until at least the fall of 2009."
At the end of January the company laid off 72 employees in its US operations and has implemented salary reductions for all remaining non-union US payroll employees.
