Electronics Production |
Flextronics with pressured margin goal
EMS-provider Flextronics is 'facing headwinds' when it comes to reaching the margin goal of 3.5%'. This was attributed, in part, to rising costs in China.
Flextronics had forecasted a operating margin of 3.5%, provided that certain benchmarks would be reached. CFO Paul Read said at the Citigroup Global Technology Conference in New York that the EMS-provider is still pursuing that goal. However, he did not state any dates on when this will be reached, writes Reuters in a report.
"Short term, we've just got some headwinds on the components side (of the business) and as we get past them in the next one to two quarters, as we look ahead to next year we'll see a lot more improvement (in margin)", he was cited in saying.
