Flextronics swings to fiscal 4Q loss on large charges

SINGAPORE—Electronics manufacturing company Flextronics International Ltd. said Tuesday it swung to a fiscal fourth-quarter loss as it recorded a massive restructuring charge after a recent acquisition.

For the period ended March 31, Flextronics posted a loss of $93 million, or 11 cents per share, compared with earnings of $121 million, or 20 cents per share, in the year-ago period.

Excluding stock-based compensation and restructuring charges, profit was $214.5 million, or 26 cents per share.

Revenue jumped 66 percent to $7.78 billion from $4.68 billion.

Analysts polled by Thomson Financial forecast, on average, earnings of 23 cents per share on revenue of $7.78 billion. Analysts typically exclude one-time items.

Selling, general and administrative expenses jumped 71 percent between the periods to $246.3 million from $144.2 million.

The jump helped fuel a drop in operating income, which slid 82 percent to $13.8 million from $76.8 million.

Singapore-based Flextronics said last June it would buy Solectron Corp. for $3.6 billion. During the fiscal fourth-quarter, Flextronics recorded $217.8 million in restructuring and other charges.

"Our better-than-expected operating performance is attributable in part to the successful integration of the Solectron acquisition, which I believe is one of the most successful large scale acquisitions ever completed in any industry, as well as from operating a large diversified company, which is not overly dependent on a particular geographic region, market segment, customer or product," Chief Executive Mike McNamara said in a release.

For the fiscal year, Flextronics posted a loss of $639 million, or 89 cents per share, on revenue of $27.56 billion. Excluding certain items, profit was $744.8 million, or $1.02 per share.

Shares rose 24 cents, or 2.3 percent, to $10.60 in aftermarket trading Tuesday.

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AP Business Writer Ernest Scheyder in New York.

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