Printed Circuit Design & Fab Online Magazine - Market News

Market News

NEW YORK -- L-3 Communications reported a first-quarter net sales increase of 4%, with sales of $3.6 billion compared to $3.5 billion for the first quarter of 2008. Earnings per share increased 10%.

“L-3 had a good start to the year,” said Michael T. Strianese, chairman, president and CEO of L-3 Communications. “We grew sales, operating income, diluted EPS and cash flow, and continued to deploy the company’s cash flow to increase shareholder value. During the quarter we acquired Chesapeake Sciences Corporation for $87 million, repurchased $232 million of our common stock, and paid cash dividends of $42 million. We also increased our quarterly cash dividend by 17% to $0.35 per share.”

Consolidated net sales increases were driven by growth in the Command, Control, Communication, Intelligence, Surveillance and Reconnaissance (C³ISR) segment, and in the Specialized Products segment. Included in the increase in sales is a 2% increase from acquired businesses.

Funded orders for the 2009 first quarter decreased 8% to $3.8 billion compared to $4.1 billion from the 2008 first quarter. Funded backlog increased slightly to $11.7 billion at March 27, 2009 from $11.6 billion at Dec. 31, 2008.

ST. PAUL, MN -- 3M announced first-quarter sales of $5.1 billion, down 21.3% year-over-year. Net income was $518 million, or $0.74 per share, down 48.2% compared to first quarter 2008.

“As expected, the global economic slowdown dramatically affected our businesses in the first quarter,” said George W. Buckley, 3M chairman, president and CEO. “Substantial end-market declines and continued inventory takedowns in major industries, including automotive, consumer electronics and general industrial manufacturing… In 2009, we will enhance our balance sheet by improving our free cash flow while still maintaining a significant investment in R&D. Our strategy will strengthen the company and position us for even greater success when global economies recover.”

3M has cut its outlook, now expecting 2009 organic sales volume to decline between 11% and 15%. The previous assumption called for a decline of 5% to 9%. 3M expects 2009 full-year earnings to be in the range of $3.90 to $4.30 per share, down from a previous range of $4.30 to $4.70.

In the Electro and Communications business segment, sales declined 34.8% to $480 million. Local-currency sales was down 29.8% due to significant double-digit declines in the electronics, semiconductor, telecommunications and appliance markets. Operating profits for the segment were down 84% to $24 million.

SAN JOSE, CA – Weak product demand continues to affect Sanmina-SCI Corp.’s financials. The company reported a second-quarter loss of $37.5 million, compared to $39.9 million last year.

TORONTO – Celestica Inc. reported first-quarter net earnings were $19.2 million, down from $29.8 million year-over-year.

WILMINGTON, DE – The fourth-quarter slump has seeped into first-quarter results for DuPont. The company reported revenue for the quarter fell 17% from last year to $7.27 billion, forcing a revision to its full-year earnings outlook.

LISLE, IL – Molex Inc. reported a third-quarter net loss of $58.6 million, compared to a $50.3 million profit last year. The company blames a higher restructuring charge and a drop in orders.