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GLENVIEW, IL -- Illinois Tool Works today reported fiscal second-quarter operating revenues fell 21% year-over-year as its Power Systems and Electronics unit took a 36.9% hit.

SAN JOSE – The underlying burdened cost of labor for EMS was basically unchanged in July/August, says a leading industry analyst.

The burdened cost of EMS labor in the fourth quarter is expected to be flat to very slightly lower in Mexico; marginally higher in Eastern Europe, Japan and China; and flat in the balance of the reported global geographies, Charlie Barnhart & Associates said.

Margins in all sectors are expected to remain relatively constant in the quarter, as backlogs and book-to-bill ratios stabilize.

Lead times remain relatively flat to slightly down, and are expected to improve slightly over the balance of 2009, but demand is expected to remain soft.

Historically, during times of flat to falling industry demand, average margin expectation tends to be flat to very slightly down at the higher tiers, down among mid-sized firms, and flat to up slightly on the smallest projects, the firm said.

PECS, HUNGARY – Elcoteq will move production from its Cserkút plant to its nearby Pécs facility in Hungary, according to local Hungarian news sources.

The lease on Elcoteq’s plant in Cserkút, which has a reported 50 to 80 employees, is expiring and the company is not renewing it.

Elcoteq laid off 1,350 workers at Pécs earlier this year, including 450 full-time employees. While another round of layoffs is reportedly pending, the EMS firm has reduced the number to 700.

TOKYO -- NEC, Casio Computer and Hitachi will merge their cellphone handset-manufacturing operations by next April, the companies said today.

SMYRNA, GA – Suppliers of electronics design tools and PWB fabrication services will make several product and service announcements during PCB West next week.

Accurate Circuit Engineering has received ITAR certification. DFM will introduce MakeCAP Power software. Flex Interconnect Technologies will show its flex and rigid-flex circuits, including HDI. Infinite Graphics will demonstrate IGI Phototooling Toolbox, a hierarchical editor for phototools, and Netlist Doctor, which diagnoses PCB data and electrical test netlists for problems.

Intercept Technology will show the Xtent Technology Rules Editor, an integrated single source tool for managing design rules and constraints. Multi-Flex Circuits Australia introduces flat pricing, reduced engineering and reduced tooling costs, free evaluation samples and other services.

North Bay Technical will feature the Mits FP21T/40 PCB prototyping system, priced under $30,000. Sigrity will show the OptimizePI 2.0 power delivery assessment tool and PowerDC Version 9.0 DC analysis software. Whizz Systems has added Agilent 5DX inspection and comprehensive FPGA design services.

PCB West will be held Sept. 14 - 18 in Santa Clara, CA.

For more information, visit www.pcbwest.com.

PCB West is sponsored by UP Media Group Inc., parent company of Circuits Assembly.