January 24, 2013 / 10:13 PM / 5 years ago

Flextronics forecasts 4th-qtr below estimates

Jan 24 (Reuters) - Contract manufacturer Flextronics Inc forecast fourth-quarter results below Wall Street expectations, blaming an uncertain economy, sending shares down 8 percent after the bell.

“It is clear that the macroeconomic environment is challenging with limited visibility and many economic risks remain,” Chief Executive Mike McNamara said in a statement.

The company said it expects fourth-quarter adjusted earnings of between 11 cents and 15 cents per share, on revenue of $5 billion to $5.3 billion.

Analysts were expecting adjusted earnings of 20 cents per share, on revenue of $5.69 billion, according to Thomson Reuters I/B/E/S.

Flextronics’ customers include Apple Inc, Microsoft Corp, Hewlett-Packard Co Xerox Corp and Research In Motion .

In the fourth quarter, the company expects to take an additional pre-tax restructuring charge of between $100 million and $125 million, which comprises primarily of employee severance and benefit costs.

Net income more than halved to $32 million, or 5 cents per share, in the third quarter, from $106 million or 15 cents per share, a year earlier.

Revenue fell about 18 percent to $6.12 billion.

Excluding items, the company earned 21 cents per share.

Analysts had expected adjusted earnings of 21 cents per share, on revenue of $6 billion.

In the third quarter, Flextronics took a pre-tax restructuring charge of about $103 million, of which $21 million of cash charges were primarily related to employee severance and benefits and $82 million of non-cash asset impairment charges.

Flextronics shares were down about 8 percent at $6.20 after the bell. They closed at $6.72 on the Nasdaq on Thursday.

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