Slow down? Not for Flextronics. At least, not until next year.
The company’s diverse product portfolio – mobile phones, Xbox 360, PCs, laptops, networking gears… – strategy is apparently paying off.
The Singapour-based contract manufacturer which clients include Cisco Systems, Dell, HP, Microsoft, Nokia and Sony Ericsson can’t really produce much more in its 100 factories worldwide than it did last quarter, generating a record $8.86 billion.
And inspite a lower outlook for this current holiday quarter, Flextronics CEO points to a strong pipeline. “We’re pretty much utilised”, admits Mike McNamara.
In the contract manufacturing world, Flextronics is ahead of competitors like Benchmark Electronics, Celestica, Foxconn, Jabil Circuit or Sanmina-SCI since its acquisition of Solectron in June of last year for $3.6 billion.
The combined company then quickly closed 20 factories through cost cutting measures and hope to reduce its costs even more – roughly 3.4% – by the middle of next year.
“We don’t know how bad this economic crisis is going to be… But we’re going to get out of the ditch faster than others”, said Flextronics’ CEO during a call with investors.
