News
The company will also close about 850,000 sq. ft. of facilities in Europe and North America.
The company said that it estimates the restructuring plan will be completed by the end of its fiscal third quarter of 2006. Most of the 3,500 employees to be laid off are in locations in Europe.
For the quarter ended April 2, the company reported net income of $852,000, up 661% from last year and up 74% from the second quarter.
In a press release, Jack Oehlke, president and chief executive,
credited growth to higher sales to existing customers for specialty
printer accessories and components, and
gaming technology.
The firm said it will add capacity in China and Mexico. "[We] plan to expand
capacity in Mexico by buying the building adjacent to our existing
facility in Juarez during the fourth quarter of fiscal 2005," Oehlke said. "We also
are investing in our worldwide printed circuit board operations to
ensure compliance with new environmental regulations."
Key Tronic guided for fiscal fourth quarter revenue
to increase five to 10% sequentially and earnings of $0.08 to $0.12 per share.
Key Tronic will host a conference call today to discuss its financial results at 2:00 PM Pacific (5:00 PM Eastern). A broadcast of the conference call will be available at www.keytronic.com under "Investor Relations" or by calling 800-218-0204 or +1 303-262-2211. A 48-hour replay will be available by calling 800-405-2236 or +1 303-590-3000 (Reservation No. 11027377). A replay will also be available on the Company's Web site.
About Key Tronic
For the three months ended March 31, the firm reported revenue of $3.61 billion, down 4% from $3.77 billion last year. The company cited lower demand for handsets, saying handset sales fell $480 million in the fourth quarter from the prior period.
The quarterly profit rose to $74.2 million, from $16 million a year ago.
The analyst consensus was sales of $4 billion.
For
the fiscal year, Flextronics recorded a profit of $339.9 million on sales of $15.91 billion.
Flextronics guided for sales of $3.7 billion to $3.9 billion for the July quarter.
For fiscal 2006, the company expects sales of $17 billion to $17.5 billion, which would be a record for EMS/ODM firms. Analysts forecast sales of $19 billion.
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