Reuters: Global Markets: Flextronics forecasts fourth quarter below estimates

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Flextronics forecasts fourth quarter below estimates Jan 24th 2013, 22:11 Thu Jan 24, 2013 5:11pm EST (Reuters) - Contract manufacturer Flextronics Inc (FLEX.O) forecast fourth-quarter results below Wall Street expectations, blaming an uncertain economy, sending shares down 8 percent after the bell. "It is clear that the macroeconomic environment is challenging with limited visibility and many economic risks remain," Chief Executive Mike McNamara said in a statement. The company said it expects fourth-quarter adjusted earnings of between 11 cents and 15 cents per share, on revenue of $5 billion to $5.3 billion. Analysts were expecting adjusted earnings of 20 cents per share, on revenue of $5.69 billion, according to Thomson Reuters I/B/E/S. Flextronics' customers include Apple Inc (AAPL.O), Microsoft Corp (MSFT.O), Hewlett-Packard Co (HPQ.N) Xerox Corp (XRX.N) and Research In Motion (RIM.TO) (RIMM.O). In the fourth quarter, the company expects to take an additional pre-tax restructuring charge of between $100 million and $125 million, which comprises primarily of employee severance and benefit costs. Net income more than halved to $32 million, or 5 cents per share, in the third quarter, from $106 million or 15 cents per share, a year earlier. Revenue fell about 18 percent to $6.12 billion. Excluding items, the company earned 21 cents per share. Analysts had expected adjusted earnings of 21 cents per share, on revenue of $6 billion. In the third quarter, Flextronics took a pre-tax restructuring charge of about $103 million, of which $21 million of cash charges were primarily related to employee severance and benefits and $82 million of non-cash asset impairment charges. Flextronics shares were down about 8 percent at $6.20 after the bell. They closed at $6.72 on the Nasdaq on Thursday. (Reporting by Chandni Doulatramani in Bangalore; Editing by Supriya Kurane) Link this Share this Digg this Email Reprints

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