Flextronics profit tops forecasts as sales jump
SAN FRANCISCO (Reuters) - Flextronics International Ltd (FLEX.O) posted quarterly earnings that beat Wall Street expectations on Tuesday, as sales at the contract electronics maker jumped 18 percent.
Flextronics, which counts Hewlett-Packard Co (HPQ.N) and Microsoft Corp (MSFT.O) as customers, said second-quarter net profit was $121 million, or 20 cents per share, compared with $185 million, or 31 cents per share, a year earlier.
Excluding costs such as stock-based compensation and amortization of intangibles, Flextronics had a profit of 24 cents per share, up from 20 cents a share a year earlier and ahead of the average forecast of 23 cents on Reuters Estimates.
Net sales were $5.56 billion, up 18 percent from $4.7 billion a year earlier.
Shares of Flextronics rose as much as 2.6 percent after the earnings report, but later trimmed those gains to trade at $11.90, up 6 cents from the Nasdaq close.
Flextronics shares are up 3.1 percent so far this year, compared to a fall of more than 12 percent for those of Jabil Circuit Inc (JBL.N), its chief rival.
Flextronics did not provide forecasts for its third quarter, saying that would be given during a meeting for Wall Street analysts early next month.
Sales from the mobile segment that accounts for 28 percent of Flextronics' sales rose 2 percent from a year earlier. The company makes cellular telephones for companies such as Sony Ericsson (6758.T)(ERICb.ST), its largest single customer.
The infrastructure segment, which includes networking and telecommunications equipment, accounted for 27 percent of sales and saw growth of 36 percent from a year earlier, Chief Financial Officer Thomas Smach told analysts on a conference call.
Sales of other consumer electronics, such as digital cameras and computer printers, grew 9 percent on the year and made up 21 percent of total sales.
Sales of computing products, which include personal computers, servers and video game consoles such as Microsoft Corp's Xbox 360, jumped 35 percent from a year ago and accounted for 13 percent of the total.
(Reporting by Scott Hillis)
