Flextronics post record result in Q2

Adjusted operating profit for the second quarter ended September 26, 2008 increased 72% over the year ago quarter to $295 million, while adjusted operating margin improved 20 basis points to 3.3%. Adjusted net income for the second quarter ended September 26, 2008 increased 57% over the year ago quarter to $230 million, while adjusted EPS increased 17% to $0.28. "We are pleased with our execution this past quarter, especially given the challenging economic environment," said Mike McNamara, chief executive officer. "Highlights of the quarter included revenue growth in all of our market segments, new product and customer wins, increased diversification in our customer base, improved SG&A and operating efficiencies, and the repurchase of 30 million, or approximately 4%, of our outstanding shares." During the second quarter ended September 26, 2008, Flextronics repurchased approximately 30 million ordinary shares. Flextronics' shareholders reauthorized the repurchase of up to 10% of outstanding shares at the company's annual general meeting on September 30, 2008. As of September 26, 2008, there were approximately 809 million shares outstanding. During the second quarter ended September 26, 2008, the company recognized $129 million in charges primarily for provisions for doubtful accounts receivable, the write-down of inventory and recognition of associated contractual obligations for some customers that have become distressed due to the worsening global credit market conditions.