ITASCA, IL -- Illinois Tool Works, the parent company of several leading electronics equipment and materials suppliers, reported fourth-quarter revenues fell 6% and operating income dropped 33% from last year.

For the quarter, margins fell 450 basis points to of 11.3% and operating cash flow was $509 million.

ITW's power systems and electronics segment revenues fell 9.6% and operating income fell 27.7%. Base revenues -- sales from continuing operations -- were down 10.8%, primarily on a 9% drop in the company's welding businesses. Operating margins were 15.4%, down 380 basis points from the prior year period with base margins declining 220 basis points and acquisitions diluting margins 130 basis points.

For the year, revenues increased 6.7% on acquisitions and favorable currency translations. Operating income was down 4.5% and margins were down 180 basis points to 14.7%. Free operating cash flow was $1.9 billion, or 123% of net income.

ITW is parent company to Speedline Technologies, Vitronics-Soltec, Chemtronics, Kester Solder and other electronics assembly suppliers.

FT. COLLINS, CO – RPM Electronics Inc. will close by the end of April and lay off its remaining 70 workers.

As reported by Circuits Assembly in December, the electronics manufacturing company previously was expected to close in February.

In published reports, RPM chief executive Chuck Mann cited the loss of business from RPM’s two main customers, Advanced Energy and Plasmon. Those OEMs made up 55% of RPM's sales and have started outsourcing its work to China.

Mann is also COO of RAD Electronics, which acquired RPM in March 2008.

ELKHART, IN – CTS Corp. reported fourth-quarter net earnings fell 26% to $5.7 million on a 9% drop in sales. The results include restructuring and related costs.

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TOKYO – Omron Corp. reported net sales for the nine months ended Dec. 31 decreased 10.6% year-over-year to 499 million yen. Operating income fell 61.4% to 16.7 million yen during that time. Earnings before taxes fell 66.5% to 14,740 million yen, and net income was down 69% to 9.1 million yen.

The company is forming a new division, headed by president and CEO Hisao Sakuta, responsible for ensuring that emergency measures and structural reforms spearheaded by the head offices are swiftly and steadily implemented. Those steps include withdrawing from unprofitable businesses, suspend large-scale investments, and implement further cost-cutting in order to reduce costs by 40 billion yen. The company will restructure its three control businesses (industrial automation, electronic components, and automotive electronic components) and consolidate global production bases. 

US$1 = JPY 102.

TORONTO – Celestica Inc. announced fourth-quarter revenue fell 27% from last year to $1.94 billion. The GAAP net loss was $822.2 million, down from a GAAP net loss of $11.7 million last year, largely on goodwill writeoffs of $850.5 million.

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ST. PETERSBURG, FL -- Jabil will sharply reduce its manufacturing capacity around the world and lay off up to 3,000 workers, the company said. Jabil will take estimated charges of $65 million in pre-tax restructuring and impairments costs during fiscal 2009 and 2010.

The moves will affect about 10 facilities, which Jabil did not specify. The company said 10% of the headcount reductions will take place in the US.

Jabil said the restructuring should save the firm $55 million annually.

Jabil currently employs 85,000 workers worldwide.

SAN JOSE -- Flextronics, the world's second largest EMS company, reported fiscal third quarter net sales of $8.2 billion, down 9.9% year-over-year.

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NEENAH, WI -- Plexus Corp. reported first-quarter revenue of $456 million, at the low end of company guidance and flat with last year. Revenues declined 4% sequentially.  Net income for the quarter ended Jan. 3 was $17 million, down 59%.

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ARDEN HILLS, MN – Celestica Inc. will shutter its electronics manufacturing plant later this year, a move that will cost 590 workers their jobs.

The cuts will begin in April and continue through November, affecting 440 employees and 150 contract workers.

EL PASO, TX – Susan Mucha of Powell-Mucha Consulting Inc. will present on ways EMS companies can find and grow accounts in today’s volatile economy, as part an upcoming IPC-sponsored curriculum aimed at EMS program managers and executives.
 
The tutorial will be held April 2, as part of the IPC EMS Program Management Training & Certification program during the Apex trade show.
 
Topics to be covered include assessing business models and developing a value proposition suitable for a target market; stretching marketing dollars while increasing industry visibility; shortening the sales cycle through more effective use of sales and marketing resources; integrating the program team into the selling process; developing the most competitive value proposition through better understanding of the selection team, and developing long-term business growth plans.
 
This tutorial pulls from principles outlined in Mucha’s book, Find It, Book It, Grow It. – A Robust Guide to Account Acquisition in Electronics Manufacturing Services.
 
For more information, visit http://www.ipcapexexpo.org/html/main/programs-for-executives.htm.
 

HANAU, GERMANY – Heraeus has acquired BASF Catalysts’ thick films and ceramic colors business in East Newark, NJ.
 
Financial terms of the transaction were not disclosed.
 
BASF's materials are used in electronics and decorative applications.
 

MUNICH – Siemens Electronics Assembly Systems became operational Jan. 1 as a legally separate company within the Siemens technology conglomerate.
 
This step signaled the end of the so-called “carve-out process,” begun in 2008, the firm reports. The new company handles the Siplace placement machines and related assembly equipment lines.
 
In addition, the company’s restructuring program is entering a second phase. Plans call for further streamlining of the company’s global processes, and consolidation of its development and manufacturing capacities. The firm did not provide further details.