ANGLETON, TX – Contract manufacturer Benchmark Electronics posted sales of $570 million for the quarter ended Sept. 30, down 7.2% year-over-year on an unexpected drop in its test and instrumentation market segment.

Net income was $20 million, down 9% compared to the same period in 2010.

“During the quarter we experienced an unanticipated decline in demand primarily concentrated in the test and instrumentation industry. The significant drop in revenues, and to a lesser extent, transition costs to low-cost geographies, adversely impacted our operating margin for the quarter,” said CEO Cary T. Fu.

The company said it is taking steps to mitigate supply chain issues brought about by massive flooding in Thailand.

“Recently, we announced that our Thailand facilities have been impacted by severe regional flooding. To ensure that our customers' critical requirements are met in the fourth quarter and beyond, we are rapidly ramping capacity at our other facilities around the world, including our recently restarted facility in Korat, Thailand.”

Without taking the Thailand situation into consideration, the company expects fourth-quarter sales between $475 million and $525 million.

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