News
The company announced plans for a 175,000 sq. ft. facility in Ranjangaon, India, its second in that nation. The plant is expected to be fully operational by mid-2005, and will perform assembly, enclosure integration, distribution and repair services and design.
"Planning this second facility in India underscores our commitment to this growing marketplace and the manufacturing needs of both global and indigenous electronic companies in India," said Bill Muir, regional president of Asia. "We see a growing need for full turnkey solutions to serve the India marketplace and our Ranjangaon facility will allow us to offer the full complement of services in close proximity to our end-customers."
Jabil also plans a groundbreaking for a fourth plant in Wuxi, China, next Monday. The 515,000 sq. ft. plant is planned to be fully operational in next fall.
Jabil currently operates 40 facilities worldwide.
The drop in revenues was due to weakness in consumer demand for set-top boxes and 3-G wireless handsets, and lagging semiconductor equipment orders, Solectron said. Sales of networking gear also fell.
Earnings met the company's previous guidance.
The firm guided for sales of $2.65 billion to $2.8 billion for the February quarter. "Looking forward, we expect revenue growth in the second half of the year, driven by the expected ramp of recent wins and improved demand," said Mike Cannon, president and chief executive.
Gross margins improved 40 basis points sequentially and operating expenses were cut to $96 million. Cash flow from operations was $190 million. Inventory was reduced $52 million. Inventory turns were 7.1.
The site, located in Peachtree City, GA, will be cut to a single building, from 300,000 sq. ft. and four buildings over the next nine months. The staff will be reduced to 100 workers from the current headcount of 600.
"This change to the physical presence of Photocircuits in North America results from the changing competitive landscape for printed circuits," the company said in an unattributed statement. "More and more customers demand the economic advantages of sourcing in Asia."
Photocircuits will maintain print-and-etch operations in Peachtree City, plus sales and technical services, logistics and inventory management.
Backlogs will be sent to Photocircuits' facility in Glen Cove, New York, and factories in China, where the PCB maker partners with Japan-based CMK.
The company estimates that realignment of the site will last about nine months.
2004 has been unkind to Photocircuits, one of the oldest PCB firms in the world. The company, once the largest board shop in the U.S., is in the hands of outside management and two of its longtime owners -- John Endee and Steve Wohlgemuth -- have been let go. The company had sales of $234 million in 2003, according to PCD&M contributing editor Hayao Nakahara, making it the 32d largest PCB company in the world.
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