Flextronics Maintains Quarterly Outlook Dec 3, 2003

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Flextronics International Ltd, the largest contract electronics manufacturer, said its financial outlook for this quarter and next remained unchanged as most of its businesses strengthen.

Flextronics, which makes products for customers including Microsoft Corp., Dell Inc., and Hewlett-Packard Co., had said in October it expected revenue in its third quarter (ending in December) to be between U.S. $3.6 billion and $3.9 billion, with earnings excluding charges of $0.13 cents to $0.15 per share.

The Singapore-based contract manufacturer also said it expected revenue in its fiscal fourth quarter to be between $3 billion to $3.3 billion, with earnings excluding charges of $0.07 per share to $0.09 per share.

Michael Marks, Flextronics CEO, said during a mid-quarter update that business conditions continue to show modest but steady improvement as demand for high-tech products strengthens.

"Some of the true end demand will not get met this quarter. Some of that demand will roll over into the March quarter," Mr. Marks said during a conference call.

"Our customers are back to placing orders farther out," Mr. Marks added. "Customers are back into longer-term planning."

Separately, Moody's Investors Service revised its rating outlook for Flextronics to stable from negative, Moody's announced. The outlook change reflects an earlier announcement that Flextronics had reached a full settlement with Beckman Coulter Inc., resolving a potentially expensive breach-of-contract dispute. (Reuters)

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