Investment bank Deutsche Bank says investors in the EMS (electronics manufacturing services) sector should be more cautious with expectations of growth for the fourth quarter of 2008 and throughout calendar 2009.
Recent turmoil in the financial markets and concerns about the economic impact have taken center stage recently. At the same time, commentary from technology companies suggests demand remains weak as we head into the fourth quarter of 2008.
In addition, the headwinds of a rising dollar, slower growth in Europe, and a slow down in China also create concern. As a result, Deutsche Bank expects EMS revenue growth and earnings to be under pressure in throughout calendar year 2009.
Recent negative comments from OEM customers such as Dell, Nortel and Ciena, plus cautious comments from electronics distributor Ingram Micro add further concern that technology companies are now beginning to see a more significant slow down as we head into the fourth quarter of this calendar year.
VentureOutsource.com, September 2008
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