Contract manufcturers face murky prospects

Article Abstract:

Contract manufacturers like Jabil Circuit Inc. and Solectron Corp. are having difficulting coping with a decrease in demand due to the down turn in the economy. The firms had been enjoying an abundance of outsourcing contracts. Other firms affected include Flextronics International Ltd., and SCI Systems Inc.

Planning, Outsourcing

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Jabil Circuit posts lower earnings for quarter, matching forecasts

Article Abstract:

Jabil Circuit Inc. reported lower third-quarter earnings of $18.8 million, down from $38.2 million the year before.

Sales, profits & dividends, Finance, Company sales and earnings, Company earnings/profit

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Solectron agrees to buy Smart Modular, posts better-than-expected earnings

Article Abstract:

Solectron Corp., an electronics contract manufacturer, will acquire computer peripherals maker Smart Modular Technologies Inc. in a $2 billion stock swap. Solectron, the world's largest electronics outsourcing company, reporting significant increases in earnings and revenue over the previous year, expects continued high growth in the coming fiscal year. Industry analysts say Selectron will be able to reach new computer markets as it moves into product design, access to electronics parts and product repair services with its acquisition of Smart Modular Technologies. The acquisition is structured on an exchange 0.51 of a Selectron share, priced at $73.75, for each share of Smart Modular, representing a 55% premium over Smart's closing price of $24.3125.

Computer Storage Device Manufacturing, Memories & Storage Devices, Computer storage devices, Mergers, acquisitions and divestments, Computer peripherals industry, SMART Modular Technologies Inc., SMOD

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