Electronics manufacturing services provider Flextronics ( FLEX) fell short of consensus earnings estimates for the fourth quarter, and the company neared completion of the plan to reduce production capacity and cut its workforce.
Flextronics posted income of 22 cents a share, coming in below the Thomson Financial/First Call consensus estimate of 24 cents. The company earned 17 cents in the year-ago period. Sales for the quarter totaled $3.11 billion, up 40% from $2.23 billion in the same period last year. Sales for the entire fiscal year 2001 reached $12.1 billion, up 74% from the previous year. The company recorded a charge of $276 million in the fourth quarter for restructuring purposes, and will take another charge of $10 million to $20 million in the next quarter for the same reason. The company's restructuring plan includes the elimination of 10% of its workforce and a 15% cutback in capacity. Flextronics also said that "revenue over the next couple quarters will be in line with that of the immediately preceding quarters." Shares of Flextronics closed the regular Nasdaq trading session at $22.17, down 28 cents on the day, before gaining back 6 cents to $22.23 in after-hours Instinet action.