Flextronics announced plans to reduce its global manufacturing capacity and infrastructure as a result of the current macroeconomic conditions and decline in demand from its OEM customers.
Flextronics said the current global economic crisis and related decline in demand for its customers’ products across all of the industries served has caused its OEM customers to reduce their manufacturing and supply chain outsourcing, ultimately impacting the company’s capacity utilization levels.
Flextronics expects to recognize between $220 million and $250 million in pre-tax restructuring and impairment costs over the course of the Company’s fiscal years 2009 and 2010. Approximately $190 million to $210 million of these costs are expected to be recorded in the Company’s operating results for the fiscal year ending March 31, 2009. Flextronics expects that a significant portion of the total restructuring costs will be related to employee benefit and severance arrangements.
http://www.flextronix.com
