TAIPEI - Foxconn Electronics (Hon Hai) reported its lowest revenues in two years, with February non-consolidated falling 10.5% sequentially and 10.6% year-over-year.

The company, the world's largest EMS provider, had sales of NT$82.7 billion ($2.38 billion) for the month.

Foxconn cited IT seasonality and lackluster consumer electronics sales for the drop.

ARLINGTON, VA -- Electronic component orders continued to fall in February, but not as sharply as in January, according to the monthly index compiled by the Electronic Components Association. The 12-month average, comparing this year's results to last year's, continued a descent that began last summer.

ELK GROVE VILLAGE, IL -- A local paper is reporting that Flextronics has filed documents in Illinois indicating plans to close operations in Elk Grove Village this Spring, a move that would cost 113 workers their jobs.

The Daily Herald says the operations at 1150 Lively Blvd. and 1065 Chase Ave. will be closed by May. Flextronics did not comment on the report.

NANTOU, TAIWAN – Universal Scientific Industrial reported February consolidated net revenue of $95.8 million, up 5% sequentially and down 41% year-over-year.

On a non-consolidated basis, monthly net revenue amounted to $44.1 million, up 28% sequentially and down 28% year-over-year.

USI, which is the world’s 24^th largest EMS company according to the Circuits Assembly Top 50, reported electronics packaging and EMS sales of $23.4 million, or 24% of total revenue. The figure was up 24% sequentially and down 39% from the same period last year.

Computers and peripherals showed net revenue of $26.2 million (27% of total sales), up 11% sequentially and down 48% year-over-year.    

Communications also accounted for 24% of revenue, at $22.9 million, up 2% sequentially and down 29% year-over-year.

TORONTO – EMS provider SMTC Corp. reported 2008 fourth-quarter revenue of $61.1 million, up 1.6% sequentially and down 8.5% year-over-year.

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EL SEGUNDO, CA — After years of singlehandedly powering the robust growth of the global electronics manufacturing services business, Foxconn (Hon Hai) grew marginally in 2008, and the top-tier EMS market contracted, according to preliminary market-share results from iSuppli Corp.

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LONDON – Despite a lackluster fourth quarter, the Cookson Group reported its 2008 revenue climbed 23% to ₤2.203 billion ($3.04 billion).

The company, the parent of Alpha Metals and Enthone, reported trading profits up 11% to ₤216.3 million ($298.3 million), and pre-tax profits climbed 18% to ₤176.3 million ($243.1 million).

The electronics division saw a year-over-year revenue increase of 11% to ₤620 million ($854.9 million) at reported exchange rates.

For the year, assembly materials sales fell 10% to ₤382 million (US$526.8 million) on an increase in metal prices, especially tin and silver. Chemistry sales dropped 9% to ₤238 million (US$328.2 million) on the sharp decline in the electronics and automotive markets.

Nevertheless, the fourth-quarter slide has continued into the first quarter, and Cookson plans to reduce its overhead by $55.2 million.

MENLO PARK, CA -- A March survey of senior operations and supply chain professionals at 75 electronics OEMs uncovered concern over the viability of key supply chain partners, including both EMS providers and component suppliers. Also, a number of companies are considering strategic operations alternatives – such as relocating outsourced production to different geographical regions or partners – to address the heightened need to further reduce costs in this challenging environment, Riverwood Solutions' survey found.

Key findings include:

· 69% of OEMs believe that supply chain management can be a source of competitive advantage; 31% believe that their supply chain is more nimble than that of their competitors.

· 53% plan to geographically relocate at least some of their outsourced production in the next two quarters; 50% plan to move some production to another EMS provider during that same period.

· 31% report being “Very Concerned” that their EMS provider will be unable to meet their delivery commitments in the coming year based on financial difficulty; less than 2% of respondents report being concerned that their EMS provider may be acquired by another company.

“The results of the OEM survey are consistent with what we are hearing from current and prospective customers,” said Courtney Ryan, senior vice president, Global Business Units at Jabil, in a press release issued by Riverwood. “OEMs continue to seek opportunities to reduce cost and improve competitiveness – but with a renewed focus on the supply assurance and financial stability of their EMS partners.”  

 

ELK GROVE VILLAGE, IL -- SigmaTron International reported third-quarter revenues fell 34% to $27 million, while the net loss dropped to $265,458 from a profit of $312,464 for the period ended Jan. 31.

Gary R. Fairhead, president and chief executive, said, "As noted in our last press release on Dec. 9, we experienced a drop in revenue of approximately 30% the first week of our third quarter when compared to the prior month's run rate, and that trend continued through the entire quarter. Current indications are that our revenue will continue at approximately the same rate for the short term. Beyond that, the uncertainty associated with the worldwide economy in general and the US economy specifically make forecasting close to impossible. All of our customers' markets remain volatile, and I believe we will continue to see lower revenues and volatility until at least the fall of 2009."

At the end of January the company laid off 72 employees in its US operations and has implemented salary reductions for all remaining non-union US payroll employees.

ELKHART, IND -- CTS Corp. has completed first quarter restructuring actions, which cost 95 workers their jobs.

The moves, which took place in three regions, are expected to reduce spending by $5 million annually.

The company is taking a pretax first-quarter charge of approximately $1.9 million.

HOFFMAN ESTATES, IL – Bosch Rexroth AG, parent company of Bosch Rexroth Corp., reported $8.3 billion in 2008 sales, up 9.8% year-over-year.

Sales in the Americas were up nearly 8%. The company anticipates a significantly weaker performance for the current fiscal year, but said it is maintaining its R&D investment.

The Bosch subsidiary spent around $364 million on R&D in 2008, or 4.5% of sales.

The growth experienced last year by the manufacturer of drive and control technologies was led by developments in the German, European and Asian markets.

HERNDON, VA – The International Electronics Manufacturing Initiative will release its 2009 Roadmap in April.

iNEMI is scheduled to discuss findings at industry venues worldwide, including Apex on Mar. 31 in Las Vegas; SMTA China East on Apr. 21 in Shanghai; at the Astride the Packaging Roadmap seminar, held at TWI Ltd. on Apr. 22 in Cambridge, UK, and at the European Microelectronics & Packaging Conference June 15-18 in Rimini, Italy.

The 2009 Roadmap covers five product sectors and 20 technology and business topics.  For additional information, visit http://www.inemi.org/cms/roadmapping/2009_Roadmap.html.