expects second-quarter earnings to meet analysts' expectations, and anticipates fiscal 2001 earnings to be above $1.30 a share, excluding transaction gains but including contributions from K*TEC, which the company is selling.
Kent said it agreed to sell the unit, a contract manufacturing division, for a minimum price of $175 million in cash and a $50 million senior secured note maturing on March 10 to Thayer-Blum Funding II LLC.
First Call/Thomson Financial
survey of seven analysts produced a mean earnings estimate of 32 cents a share for Kent's second quarter, and $1.35 a share for fiscal 2001. The company earned $3.7 million, or 13 cents a share, in the second quarter ended Oct. 2, 1999.
Kent, an electronics distributor and network integrator, said it expects second-quarter revenue to be about $340 million to $350 million. The company said it sold the unit to focus on its networking and specialty components business.
The purchase price is subject to a post-closing adjustment, and Kent will record a pretax gain of $30 million to $40 million in the third quarter.