| Solectron to Cut 1400 Jobs |
 |
 |
| Written by Mike Buetow | |||
| Monday, 09 October 2006 06:09 | |||
|
MILPITAS, CA -- Electronics
manufacturing services provider Solectron Corp. will cut 1,400 jobs -- about 2.5% of its workforce -- and close or consolidate roughly 11% of its square
footage in Western Europe. The firm will take restructuring charges of $50 million to $60 million for the job cuts, which would be spread over the next 12 months. The restructuring would lead to consolidation of about 700,000 sq. ft. of facilities in Western Europe and North America. On a conference call Thursday with analysts, president and chief executive Mike Cannon said, "I'm confident we can get it done within a year." He did not give details of which exact facilities are affected by the restructuring. A second phase of restructuring is planned to be completed by the end of the 2008, the company said. It will take an estimated $90 million to $100 million in charges during the second phase.Solectron, which employs about 57,000 people, said about 90% of the charges would be cash expenditures. The company said fiscal fourth-quarter net income rose to $36.8 million, up 220% from a year ago. Revenue climbed 7.4% to $2.9 billion last year, ahead of analysts' estimates of $2.71 billion. For the quarter, inventory turns rose 0.3 times to 7.2 time sequentially but were down 0.9 times year-on-year, due in part to Cisco's Lean implementation plan, which pushed inventories back onto suppliers. Solectron guided for sales of $2.60 billion to $2.80 billion in its next quarter, a roughly 3% sequential decline.
|
Columns
| Semblant Warms to New Fluoropolymer Conformal Coating |
|
Months after hinting at a new conformal coating during a paper session at SMTA International, Semblant has officially launched PlasmaShield. CIRCUITS ASSEMBLY editor in chief Mike Buetow spoke with vice president of worldwide sales and marketing Steve McClure last week. |
| Read more... |
| ECTC in Las Vegas |
What happens in Las Vegas at ECTC, doesn’t stay in Las Vegas, it is shared here. This year’s ECTC, or electronics components technology conference, was held in Las Vegas’ Cosmopolitan, May 28-31. |
| Read more... |
Features
| The Impact of Reel Splicing Kits on Setup and Changeover |
Traditional feeder setup using tape-and-reel can drain time. There’s a quick and better way. |
| Read more... |
| Standard Solar Cells vs. Next-Gen Cells: Which is Winning? |
Overcapacity is stalling the rate of improvement, but only for so long. |
| Read more... |
Search
Search
Login
CB Login
Language
Language
Products
Software release SI 7.46 reduces AOI inspection times through improved optimization of travel paths. Integrates Library Manager to assign new inspection patterns more quickly and easily, easing use...
