© Sanmina via Youtube Electronics Production | April 30, 2020
Sanmina is feeling the effects of COVID-19 – but keeps on trucking
“While the financial results for our second fiscal quarter were influenced significantly by COVID-19, I am pleased to report we were still able to generate $119 million of free cash flow and maintain a strong balance sheet with over $1.1 billion in cash.” says CEO Hartmut Liebel.
The company managed to generate net sales of USD 1.59 billion during its second quarter of 2020, down from USD 2.12 billion during the same quarter last year. 2020 second quarter operating income amounted to USD 24.36 million, down from USD 78.11 million during the comparison period. But it is the net income where we see the biggest effects of the current situation; during the reporting period Sanmina generated a net income of USD 4.88 million, down significantly from USD 40.88 million during the second quarter last year. “These are unprecedented times and I am grateful to our employees for their strength and commitment to Sanmina and our customers, many of whom are providing essential products during this crisis. I am most impressed by how well our leadership team responded to these new challenges as we continue to navigate the evolving situation on the global supply chain. The health and safety of our employees is our top priority and we continue to take precautionary measures," says Hartmut Liebel, in the fiscal quarter report. The company also announces the ending cash and cash equivalents of USD 1.1 billion, including USD 650 million of borrowings on its cash flow revolver as of the end of the quarter "Our strong balance sheet, continued focus on controlling our costs, generating cash, and our unwavering support for our customers providing innovative technologies and solutions gives me confidence that we are ready and well positioned for the recovery," concluded Liebel. For the third quarter of 2020 the EMS provider is forecasting revenues of between USD 1.50 billion to USD 1.60 billion.