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© bdriver dreamstime.com Electronics Production | July 29, 2019

YoY revenue down 3% for Flex

Flex announced results for its first quarter ended June 28, 2019. Net sales stood at USD 6.2 billion, with adjusted net income at USD 138 million.

“For the first quarter, I am pleased that we achieved adjusted EPS within guidance range and 11% year-over-year growth in adjusted operating profit with free cash flow of $114 million. We are repositioning our portfolio to reduce exposure to high-volatility, low-margin business, while investing in design-led wins and higher-margin segments,” said Revathi Advaithi, CEO of Flex, in a release. “This acceleration of our strategy to reposition our mix and drive profitable growth combined with disciplined execution positions Flex well for the future.” Flex ended the quarter with approximately $1.9 billion of cash on hand and total debt of approximately $3.2 billion. Cash flow from operations was negative $657 million for the three-month period ended June 28, 2019, primarily due to cash collections of $899 million for certain receivables sold under the Company’s ABS programs reported as investing activities. Adjusted cash flow from operations and free cash flow were $237 million and $114 million, respectively, for the three-month period ended June 28, 2019. The Company remains committed to using share buy-backs to enhance shareholder returns and repurchased approximately $52 million of ordinary shares during the three-month period ended June 28, 2019. Second Quarter Fiscal 2020 Guidance
  • Revenue: USD 6.1 to 6.5 billion
  • Adjusted Operating Income: USD 220 to 250 million
As a result of recent geopolitical developments and uncertainties, primarily impacting one customer in China, we have seen a reduction in demand for products assembled for that customer. Due to these circumstances, the Company has decided to accelerate its strategic decision to reduce its exposure to certain high-volatility products in both China and India. The Company also initiated targeted activities to restructure its business to further reduce and streamline its cost structure. The Company expects to incur additional restructuring and other charges throughout fiscal 2020 currently estimated in the range of USD 145 to 265 million. Second quarter GAAP guidance includes the full impact of these charges although the timing of recognition may extend throughout fiscal 2020.
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November 12 2019 7:31 am V14.7.10-2