Flextronics net sales went down to $5.6 billion for 4Q

Adjusted net income for the 4Q ended March 31, 2009 was $21.7 million and adjusted EPS was $0.03, compared to $214.5 million and $0.26, respectively, for the year ago quarter. Net sales for the fiscal year ended March 31, 2009 were $30.9 billion compared to net sales for the fiscal year ended March 31, 2008 of $27.6 billion. Adjusted operating income in fiscal year 2009 was $811.2 million with an adjusted operating margin of 2.6%, compared to adjusted operating income of $887.2 million and an adjusted operating margin of 3.2% one year ago. Adjusted net income in fiscal year 2009 was $605.0 million and adjusted EPS was $0.74, compared to $744.8 million and $1.02, respectively, for the previous fiscal year. On March 10, 2009, Flextronics announced restructuring plans intended to rationalize its global manufacturing capacity and infrastructure due to the current macroeconomic conditions. In connection with its restructuring plans, the company expected to recognize between $220 million and $250 million in pre-tax restructuring charges, with total cash expenditures expected to be between $130 million and $150 million. During the fourth quarter ended March 31, 2009, Flextronics recognized $151 million of pre-tax restructuring charges comprised of $95 million of cash charges predominantly related to employee severance and benefits and $56 million of non-cash asset impairment charges.The Company does not anticipate any changes to its original plans or estimates and expects to complete its restructuring activities within the next six months. Cash and cash equivalents totaled $1.8 billion at March 31, 2009. During the fourth quarter ended March 31, 2009, Flextronics generated $286 million of operating cash flow and $197 million of free cash flow (defined as net cash provided by operating activities, less purchases of property & equipment, net of dispositions). Also during the quarter ended March 31, 2009, Flextronics further strengthened its capital structure through a reduction of $200 million in borrowing under its $2.0 billion revolving credit facility, which as of March 31, 2009 had no outstanding borrowings. "As a result of our disciplined focus, we improved our financial strength during this period of significant economic challenge by reducing costs, improving working capital and generating strong cash flow. Sequentially, we drove down adjusted SG&A expense by 13% and reduced inventory by more than $500 million. In addition, we successfully generated $197 million of free cash flow during the March quarter to further deleverage our balance sheet," said Paul Read, chief financial officer of Flextronics. "Our main focus remains on managing the controllable aspects of our business and positioning the cvompany for future growth and profitability," said Mike McNamara, CEOI of Flextronics. "Top priorities are to control costs, improve internal efficiencies, reduce inventory levels, manage our working capital, generate strong cash flow and improve our capital structure. We are confident in our ability to adapt to economic headwinds while maintaining our scale and competitive advantages."