said its third-quarter loss widened on restructuring charges, and the company warned that its fourth-quarter results may fall below the consensus estimate.
The contract manufacturer said it lost $284 million, or 35 cents a share, in the quarter, compared to a loss of $186 million, or 28 cents a share, a year ago. The results included a restructuring and impairment charge of $313 million, or 31 cents a share.
Excluding charges, the company lost 4 cents a share, compared with income of 12 cents a year ago, but in line with previous guidance of a loss of 4 cents to 6 cents. Analysts polled by Thomson Financial/First Call had been expecting a pro forma loss of 5 cents for the quarter.
Sales also came in ahead of expectations at $3 billion, down from $3.98 billion in the year-ago quarter. Wall Street had been looking for $2.9 billion.
Solectron said, "In the face of weak end-market conditions, we are taking the right actions for our business. We are steadily implementing our restructuring program, which will help us meet short- and long-term needs."
The company plans to reduce its debt in the fourth quarter by buying about $1.5 billion in principal amount at maturity.
Going forward, Solectron warned that its fourth-quarter results could fall short of the consensus estimate. The company expects to post a loss of 3 cents to 5 cents a share on sales of $2.8 billion to $3.1 billion, compared with the current First Call estimates of a loss of 3 cents on revenue of $3.2 billion. On its conference call, the company said its end markets remain difficult and visibility remains limited, with a capacity overhang.
Solectron was recently climbing about 3% on the news of a Prudential upgrade on the stock to buy from hold. Shares recently traded at $5.50 in premarket action after closing at $5.35 on Thursday.