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News

MIAMI -- Day two of a conference for electronics hardware OEMs and their EMS suppliers was "relatively neutral," the sponsoring firm said today. One company, Plexus, suggested a possible acquisition in Eastern Europe.

In a report issued today, Deutsche Bank said Celestica CFO Anthony Puppi gave cautious forecast for end-market demand this year.

Celestica and Plexus said the March quarter is running to expectations, despite continuing pricing pressure. At the end of its latest, 15-month restructuring plan, Celestica expects capacity utilization to reach 70%.

Plexus CEO Dean Foate said that the EMS firm's top-line growth this year will be
primarily from new program ramps. The company has restructured several supply-chain agreements, "which should help drive improved working capital management in the March quarter and beyond," DB said.

Plexus also said an acquisition or greenfield expansion in Eastern Europe was a possibility.

The company expects its Penang, Malaysia, plant will reach breakeven by late in the third quarter, DB said..

GREENVILLE, SC -- The recently resigned chief executive of Kemet Corp. will receive $425,000 in cash plus other benefits as parting gifts, the company reported in an SEC filing.

Graves abruptly resigned from the company effective Jan. 26.

According to an 8-K filing by the firm, Graves, a former chief executive and director , will receive $35,416.67 per month for 12 months, $10,600 toward a car allowance, and various insurance benefits and outplacement services.

Graves is subject to a noncompete provision for the next 12 months.

MIAMI - A number of high-profile OEMs and EMS providers presenting at an analysts conference yesterday gave mixed outlooks for 2005, and at least one EMS company suggested further acquisitions are in store.

Benchmark Electronics chief executive Cary Fu "suggested that an acquisition of assets capabilities in Asia in on the horizon," Deutsche Bank analyst Chris Whitmore said today. Fu made the remarks at DB's hardware conference here yesterday.

ATLANTA - UP Media Group has issued a call for abstracts for PCB Design Conference East, the annual conference for PCB designers and engineers.

Presentations of 30 minutes, one or two hours, and half-day are sought. One- and two-day tutorials are also sought, organizers said.

For consideration, go to www.pcbeast.com for an online submission form, or e-mail conference chair Andy Shaughnessy, ashaughnessy@upmediagroup.com. Abstracts are due March 15.

Submissions should include a suggested course title, length, a short description of the target audience, a detailed 100- to 300-word abstract, and a short bio.

PCB East will be held Oct. 10-14, in Manchester, NH. The trade show is sponsored by Printed Circuit Design & Manufacture and Circuits Assembly.

SAN DIEGO -- Pulse, a large component manufacturer, today announced plans to increase prices of magnetic components for local area network, telecommunications, and power conversion applications due to rising costs of sub-components, consumables, energy and labor.

Unless set by contract, prices for certain catalog and custom products will increase between 3% and 10%, depending upon product type and quantities purchased, on orders placed after March 31, the company said in a statement.

ARMONK, NY - The groundbreaking sale of IBM's PC division to a Chinese OEM has passed a key federal review and is expected to go through.

The Committee on Foreign Investment in the United States has completed its review of the estimate $1.75 billion sale to Chinese PC maker Lenovo.

SIOUX FALLS, SD - Raven Industries Inc. today announced record sales and earnings for its fourth quarter and full year ended January 31. Net income for the quarter climbed 41% to $3.6 million. Total sales for the industrial manufacturer's rose 31% to $44 million.

For the past 12 months, Raven reported net earnings increased 29% to $17.9 million, and sales were up 18% to $168 million.

The company projects double-digit earnings growth in fiscal 2006.

The company's electronic systems division fourth-quarter sales were relatively flat at $12.2 million. Operating income declined 6% to $1.4 million. For fiscal 2005 division sales climbed 6% to $47 million, while operating profits fell 23%, to $4.5 million. "The ESD business model of providing low-volume, high-mix contract manufacturing services, coupled with strong customer service and engineering support, is still the most viable in this marketplace," the company said.

AURORA, CO - Advanced Circuits today announced the availability of a PDF preview tool said to provide an accurate, convenient view of circuit board designs prior to production.

"Traditional Gerber viewers don't always show the actual manufactured image without time-consuming setup," said Ron Huston, founder and CEO, in a statement. "PCB Check Plot Online delivers an accurate representation of the final design in a PDF format, allowing engineers to avoid costly redesign efforts and project delays once a circuit board moves into the manufacturing phase."

The tool permits engineers to upload Gerber files to Advanced Circuits' FreeDFM.com Web site and receive feedback within minutes. The feedback highlights potential design for manufacturability problems and suggests modifications. The free service requires no commitment to order.

Check Plot Online allows engineers the opportunity to remedy potential problems before declaring their design "complete."

Advanced Circuits Check Plot Online is available through its FreeDFM.com service. Engineers can view a sample of the PDF format at www.freedfm.com/checkplot.

KENOSHA, WI - SMT assembly equipment supplier Pro-Mation Inc. today named two sales persons to the Dallas area, citing increased business.

In a statement, president and CEO Gary Goldberg cited improvements in current and forecasted equipment sales for the additions.

Carey Gray and Jared Tucker will be based in the Dallas/Fort Worth area and will provide field support.

SHANGHAI - Reserved exhibition space for next month's Nepcon China/EMT China has surpassed last year's final size and more than 20% growth is expected, according to conference organizers.

The trade show, which takes place next month, will feature 700 exhibiting companies from 21 countries. Reed Exhibitions, which manages the show, forecasts 15,000 attendees from the Pacific Rim.

New for 2005 is the Soldering Zone, a showcase of the latest products and technology in soldering technology. "We are excited to be exhibiting our latest soldering equipment at the Soldering Zone. It's a rare opportunity for us to reach quality decision makers and gives us very focused platform," says David Chen, general manager of Ersa.

The show takes place April 12-15, in Shanghai. Visit reedexpo.com for details.

Nepcon is home to suppliers of equipment and materials for electronics assembly. EMT China, which is co-located with Nepcon China, focuses on component manufacturing, electronics manufacturing services and test and measurement.

The growth of the event is a reflection of the local market, Reed says. By year's end, China's electronics manufacturing base will grow by $65 billion, an increase of 135% over 2003, according to the International Finance Group. The forecasted value of China's electronics market: $247 billion.

ELK GROVE VILLAGE, IL - SigmaTron International reported third fiscal quarter net revenues of $28.3 million, up 18% for the three months ended Jan. 31. Net income was $1.4 million, up 16%, the company said.

For the nine months ended Jan. 31, the company's net revenues are up 8% to $81.2 million. Net income is down 13%, to $3.9 million.

In a press release, president and chief executive Gary R. Fairhead said sales of appliances and fitness gear increased, but competitive pricing pressures hurt gross margins.

GUADALAJARA - Electronics manufacturing in Mexico is not dead after all. While expansion in China continues to make the most waves, Mexico has been quietly reshaping its manufacturing infrastructure to accommodate higher-end and faster-turn products.

Companies are adding capacity south of the border. According to published reports, Tier 1 EMS provider Sanmina-SCI is opening a 200,000 sq. ft. manufacturing facility in Guadalajara and will "aggressively" relocate production from the U.S.; Jabil may expand in Chihuahua and Reynosa; and Hon Hai has designs on Juarez. On the supplier side, Kester announced last fall plans to ramp production in Nogales.

Product mixes taken on a new look as suppliers supplement their traditional volume business with greater value-add offerings such as box-build, systems assembly, logistics and after-market service. Jabil's new product introduction activity in Mexico is said to be up four times over last year. And Solectron's product mix has reportedly evolved from 80% high volume/low mix products in 2002 to just 45% today, with the rest being medium-volume/medium mix ((31%), low-volume/high mix (19%) and systems assembly (5%).