SCI Systems Lower on Earnings, Downgrades

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Contract electronics manufacturer SCI Systems (SCI) - Get Report was down 13% in midafternoon. The company late Tuesday posted second-quarter earnings of 37 cents per share, widely missing the Street's 42-cent estimate. It also lowered guidance for the rest of the year. Credit Suisse First Boston cut 2001 and 2002 earnings estimates, Merrill Lynch cut its intermediate-term rating to accumulate from buy and Morgan Stanley Dean Witter downgraded the company to neutral from outperform.

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, another contract manufacturer, was down 10.3% after Merrill downgraded it to intermediate-term accumulate from buy. Merrill cited the 55% rise in the stock since the beginning of December in making the change.