* Flextronics’ reporting structure continues to yield results. Discussions in industry indicate the change to a customer and end-market segment focus has helped the Company improve customer service and shorten response times. VO believes these positive changes are adequately reflected in Flextronics’ healthy backlog of new business.
* Solectron’s top-line comes in higher based on some estimates. Meanwhile, the turnaround continues to extend. Solectron reported a slight increase in revenues with little improvement on margins. The Company recognizes it must restructure in order to remain competitive and become more profitable.
* Jabil Circuit recently displayed Y/Y growth of 37% driven primarily by organic outsourcing. Nokia played a big part in Jabil’s revenue advance supported in part by Nokia’s 110% Y/Y growth which accounting for nearly 40% of Jabil’s FY06 increase.
* Viasystems is raising prices 5%. One of the largest PCB manufacturers says the increase will help offset rising raw material cost increases of 20% to 30%. The Company is also building a high-layer count facility in China. Driven by increasing customer and end-user demand for smaller footprints and greater functionality, demand for 8> layer boards is twice the demand for boards with <8 layers.
* Arrow Electronics announced it is acquiring Alternative Technology, Inc. a privately held specialty distributor of access infrastructure and security solutions. Based in Colorado, the Company has 150 employees.
VentureOutsource.com, October 2006
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