News
SEOUL -- LG
Electronics will invest $168 million to convert a plasma display production line to two solar cell lines, the company said today.
The company earmarked a PDP line in its Gumi, Korea, facilities for the switch, which will begin next month and is slated for completion by 2010.
TORONTO -- Adeptron Technologies has reported its second large outsourcing deal in two weeks, this one to supply electronics manufacturing services worth more than $4 million per year to an undisclosed Canadian OEM.
Full turnkey product support and manufacturing services are scheduled to begin in the fourth quarter, Adeptron said.
Full turnkey product support and manufacturing services are scheduled to begin in the fourth quarter, Adeptron said.
KAUNAS, LITHUANIA -- UAB Kitron, a subsidiary of Kitron ASA, has received new orders worth $13.4 million for a marine related product, with deliveries scheduled to take place in the first-half 2009.
"We are pleased to see that deliveries to these projects in 2009 are expected to be substantially greater than in 2008,” said Mindaugas Sestokas, managing director of UAB Kitron, in a press release.
Kitron, a large Norwegian EMS firm, currently has more than 350 employees at the site. Worldwide, the company has more than 1,300 employees and revenues over $250 million.
"We are pleased to see that deliveries to these projects in 2009 are expected to be substantially greater than in 2008,” said Mindaugas Sestokas, managing director of UAB Kitron, in a press release.
Kitron, a large Norwegian EMS firm, currently has more than 350 employees at the site. Worldwide, the company has more than 1,300 employees and revenues over $250 million.
NAMPA, ID -- MPC Computers on Oct. 16 cut about 22% of its workforce from its Nampa and North Sioux City, SD, facilities, the company said.
About 39% (78 positions) of the reductions layoffs came in Nampa and 49% (98) in North Sioux City, with the rest related to field sales and other locations. In all, the company laid off 200 workers, bringing its workforce at the two sites to 693.
About 39% (78 positions) of the reductions layoffs came in Nampa and 49% (98) in North Sioux City, with the rest related to field sales and other locations. In all, the company laid off 200 workers, bringing its workforce at the two sites to 693.
TAIPEI -- Asustek Computer is forecasting a 77% jump in notebook production next year on higher demand for low-cost laptops.
The company hopes to ship some 20 million units next year. If so, it would make Asustek one of the world's four largest laptop makers, behind Dell, HP and Acer.
The company hopes to ship some 20 million units next year. If so, it would make Asustek one of the world's four largest laptop makers, behind Dell, HP and Acer.
NEW YORK – The low valuations of several big-name EMS firms suggests impending restructuring, an industry analyst said yesterday.
Celestica, Sanmina-SCI and Benchmark are all below historical norms and tangible book value, noted Sherri Scribner of Deutsche Bank Equity Research in a research note. This means Wall Street expects those companies will reduce overhead in the coming months.
“[T]rading below tangible book value suggests to us that the market expects some form of restructuring at these companies,” Scribner wrote. Sanmina-SCI and Celestica are trading below their cash values, she added.
While Sanmina-SCI’s profitability has increased measurably over the past year, the company is saddled with a 55% debt-to-capital ratio and high interest rates. The company carries $1.48 billion in debt, though none of it is due before June 2010, against $1.482 billion in cash and credit lines.
As of June, Celestica had $759 million in debt and $1.2 billion in cash and short-term investments.
Benchmark had $12 million in debt due in December 2012, and $289 million in cash and short-term investments, plus a credit line of $100 million.
Plexus had a $150 million loan due in 2013. It is the only significant debt the company carries. Plexus has more than $200 million cash on hand.
Flextronics actually carried more debt – $3.79 billion – than its competitors, but just $200 million is due before 2012, and the world’s second-largest EMS company had $1.77 billion in cash and short-term investments and more than $2 billion in credit lines available.
Celestica, Sanmina-SCI and Benchmark are all below historical norms and tangible book value, noted Sherri Scribner of Deutsche Bank Equity Research in a research note. This means Wall Street expects those companies will reduce overhead in the coming months.
“[T]rading below tangible book value suggests to us that the market expects some form of restructuring at these companies,” Scribner wrote. Sanmina-SCI and Celestica are trading below their cash values, she added.
While Sanmina-SCI’s profitability has increased measurably over the past year, the company is saddled with a 55% debt-to-capital ratio and high interest rates. The company carries $1.48 billion in debt, though none of it is due before June 2010, against $1.482 billion in cash and credit lines.
As of June, Celestica had $759 million in debt and $1.2 billion in cash and short-term investments.
Benchmark had $12 million in debt due in December 2012, and $289 million in cash and short-term investments, plus a credit line of $100 million.
Plexus had a $150 million loan due in 2013. It is the only significant debt the company carries. Plexus has more than $200 million cash on hand.
Flextronics actually carried more debt – $3.79 billion – than its competitors, but just $200 million is due before 2012, and the world’s second-largest EMS company had $1.77 billion in cash and short-term investments and more than $2 billion in credit lines available.
