Fabrinet (NYSE: FN), a provider of precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, today gave an update about the impact of recent flooding in Thailand on the company’s business.
Fabrinet today announced that production at its two Thailand manufacturing facilities, both located in Pathum Thani, Thailand, is currently suspended due to the logistics and infrastructure disruption resulting from severe flooding near the company’s production facilities. While the flood waters have not to date breached the company's production facilities in Thailand, the flooding has materially impacted local transportation and utilities and has affected both arterial and access roads connected to Fabrinet's factories and some employee residences. Therefore, the company has decided to suspend production temporarily.
Conditions with the continued flooding are evolving quickly, and the extent of the impact cannot yet be determined.
Fabrinet provides precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and sub-systems, industrial lasers and sensors. Fabrinet offers a broad range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, final assembly and test. Fabrinet focuses on production of high complexity products in any mix and any volume. Fabrinet maintains engineering and manufacturing resources and facilities in Thailand, the People’s Republic of China and the United States. For more information visit:
“Safe Harbor” Statement Under U.S. Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include all of our statements that the flood waters have not directly breached our production facilities and our statements regarding the extent of the impact of continued flooding. These forward-looking statements involve risks and uncertainties. Actual results could vary materially from these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the flooding situation in Thailand could continue for an extended period of time and could even worsen; we may be required to suspend operations at our Thailand facilities for an extended period of time; customers could scale back or cancel their orders in light of perceived or real production constraints; even if the flooding subsides, the extent of damage to Thai roads and infrastructure could continue to have a material impact on our logistics and supply chain; if the flooding continues for an extended period of time, the Thai government could order a state of emergency, which could constrain our operations in Thailand, and other important factors as described in our reports and documents filed from time to time with the Securities and Exchange Commission (SEC), including the factors described under the sections captioned “Risk Factors” in our annual report on Form 10-K, filed on August 31, 2011. We disclaim any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.