Flextronics Posts Penny Beat

Guidance for the third quarter and year is in line.
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Flextronics'

(FLEX) - Get Report

second-quarter earnings fell 21% from a year ago because of higher restructuring charges.

The contract electronics manufacturer earned $58.7 million, or 10 cents a share, in the quarter, compared with $74.3 million, or 13 cents a share, a year ago. Restructuring charges totaled $32.7 million in the latest quarter, compared with $23.6 million a year ago.

Excluding those and other items, Flextronics earned 17 cents a share in the 2005 quarter, a penny better than expected.

Sales were $3.90 billion in the latest quarter compared with $3.88 billion a year ago. Analysts had been forecasting sales of $3.78 billion in this year's second quarter.

The company said operating margin rose for a seventh consecutive quarter to 3.4% in the second quarter, reflecting a coordinated services offering and a "relentless effort to contain costs in the business."

For the third quarter, Flextronics expects to earn 18 cents to 21 cents a share on sales of $3.8 billion to $4.2 billion. Analysts were expecting 19 cents a share on $4.19 billion.

For the year, Flextronics sees earnings of 80 cents to 90 cents a share on sales of $16.4 billion to $17.5 billion. Analysts forecast 82 cents on $17.10 billion.

The stock fell 20 cents to $13.50 in after-hours Instinet trading.