TEMPE, AZ - New orders and backlogs for manufacturers grew for the 23d straight month in April although the rate of growth slipped again. New orders were down 3.4 points and inventories fell 6.2 points, yet production rose 0.2 points, said the Institute for Supply Management.
The Electronic Components and Equipment sector failed to grow during the month.
The 23-month streak marks the longest period of growth in 16 years. "However, ISM chairman Norbert Ore said, "the rate of growth slowed to its lowest level since July 2003. The trend is definitely toward a slower pace of growth, and that should relieve some of the pricing pressure that the sector has experienced during 2004 and 2005."
The PMI measure of economic activity fell for the fifth month in a row, slipping 1.9 points sequentially to 53.3%. Employment was down 1 point, to 52.3%.
ST. PETERSBURG, FL - Jabil Circuits Inc. will close a recently acquired factory next month and cut 83 workers, a news report said today.
The Rocklin, CA, manufacturing plant, acquired by Jabil from Varian Electronics in February, employs 90, but seven employees are expected to be reassigned within the company.
Jabil purchased the Rocklin site as part of an $195 million acquisition of several factories from Varian.
In a press release, Jack Oehlke, president and chief executive,
credited growth to higher sales to existing customers for specialty
printer accessories and components, and
gaming technology.
The firm said it will add capacity in China and Mexico. "[We] plan to expand
capacity in Mexico by buying the building adjacent to our existing
facility in Juarez during the fourth quarter of fiscal 2005," Oehlke said. "We also
are investing in our worldwide printed circuit board operations to
ensure compliance with new environmental regulations."
Key Tronic guided for fiscal fourth quarter revenue
to increase five to 10% sequentially and earnings of $0.08 to $0.12 per share.
Key Tronic will host a conference call today to discuss its financial results at 2:00 PM Pacific (5:00 PM Eastern). A broadcast of the conference call will be available at www.keytronic.com under "Investor Relations" or by calling 800-218-0204 or +1 303-262-2211. A 48-hour replay will be available by calling 800-405-2236 or +1 303-590-3000 (Reservation No. 11027377). A replay will also be available on the Company's Web site.
About Key Tronic
The quarterly profit rose to $74.2 million, from $16 million a year ago.
The analyst consensus was sales of $4 billion.
For
the fiscal year, Flextronics recorded a profit of $339.9 million on sales of $15.91 billion.
Flextronics guided for sales of $3.7 billion to $3.9 billion for the July quarter.
For fiscal 2006, the company expects sales of $17 billion to $17.5 billion, which would be a record for EMS/ODM firms. Analysts forecast sales of $19 billion.
In a press statement Dover CEO Ron Hoffman said, "Dave has done an excellent job of
building Everett Charles into the premier test interconnect equipment supplier
to the circuit board and back end semiconductor markets. He has displayed
great strategic vision in guiding his company and will bring his high energy
level and proven track record of delivering outstanding operating results to
his new role."