Solectron Reaffirms Second-Quarter Guidance

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Solectron

(SLR)

reaffirmed on Friday the previous guidance the company gave for the second quarter and fiscal year 2001 -- an outlook that last month led Wall Street to lower the consensus estimate.

Shares of Solectron were down $1.24, or 3.1%, to $38.26 in recent

New York Stock Exchange

trading.

Solectron, which provides electronics manufacturing services to original equipment manufacturers, said it expects earnings of 29 cents to 30 cents, excluding charges, for the second quarter. Including charges, the company forecast income of 24 cents to 25 cents a share. The company expects to generate sales of $5.4 billion to $5.7 billion. Ten analysts polled by

First Call/Thomson Financial

are calling for the company to earn 24 cents in the quarter. In the same period a year ago, the company earned 19 cents a share and reported revenue of $2.86 billion.

For 2001, Solectron expects to earn between 99 cents and $1.02, before charges, with sales of more than $23 billion. The consensus earnings estimate is $1.01 for the year. The company projected earnings of $1.22 to $1.25 a share before charges. First Call said the estimates for the second quarter and fiscal 2001 are based on the figures that include the charges.

The company issued the

previous guidance when it reported first-quarter earnings in December. At the time, analysts expected the company to earn 28 cents for the second quarter and $1.15 for the year.