© blotty-dreamstime.com Electronics Production | May 02, 2013
Flextronics posts loss
Flextronics fourth quarter net sales hit the top mark of the company's guidance at USD 5.3 billion. However, compared to the same period last year it decreased 17% from USD 6.4 billion.
Net sales for the fourth quarter were USD 5.3 billion – well within the company's guidance of USD 5 – 5.3 billion. During the fourth quarter the Company recognised approximately USD 125 million of pre-tax restructuring charges comprised of USD 102 million of cash charges predominantly related to employee severance and benefits and USD 23 million of non-cash asset impairment charges. The Company's GAAP operating income and GAAP net income decreased, compared to the same quarter last year, reflecting the impacts from the restructuring charges recognized during the fourth quarter. The Company expects to recognise an additional USD 25 million to USD 30 million in pre-tax restructuring charges in the first quarter of fiscal 2014, comprised primarily of employee severance and benefit costs. These continued restructuring activities are intended to improve operational efficiencies. The Company believes that upon the completion of its restructuring activities, the potential savings achieved through reduced employee expenses and lower operating costs will yield annualized savings greater than USD 150 million. Summary:
- Net sales USD 5'295 million
- GAAP operating income USD -27 million
- GAAP net income USD -27 million