Sanmina Cuts Q4 Outlook
{{#rendered}} {{/rendered}}Contract electronics manufacturer Sanmina Corp. said on Tuesday its fiscal fourth-quarter results will fall far short of expectations as the global slowdown in technology spending drags on.
Sanmina's shares set a new 52-week low of $16.40 in morning Nasdaq trade. They were recently down 86 cents, or 4.8 percent, at $17.15.
The company is set to buy SCI Systems Inc. in a stock deal originally valued at $3.9 billion. Based on Sanmina's morning price, however, the deal is now worth about $3.4 billion.
{{#rendered}} {{/rendered}}Sanmina said results for the three months ending Sept. 29 should range from break-even to a profit of 1 cent per share, while cash earnings, which exclude such costs as goodwill amortization, should range from 1 to 2 cents per share.
Analysts had been looking for earnings of 7 cents to 11 cents per share, with a mean of 9 cents, according to research firm Thomson Financial/First Call.
Sanmina estimated revenue at $600 million and $620 million for the quarter, while analysts had been expecting about $734 million, according to First Call. The latest estimate is about half of the $1.27 billion generated in the year-earlier period.
{{#rendered}} {{/rendered}}In July, Sanmina had projected fourth-quarter revenues would be essentially flat with third-quarter sales, which totaled $776 million.
``Sanmina's operations continue to be affected by the ongoing slowdown in capital spending by its end-markets,'' Chairman and Chief Executive Jure Sola said in a statement. ``As a result of reduced near-term demand, we have implemented a number of aggressive programs to consolidate operations, improve efficiencies and realign our capacity to meet customer demand.''