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| Thursday, July 27, 2006 |
Shares of Plexus Corp. plunged Thursday after the Neenah electronics manufacturer issued a fourth-quarter outlook that fell far short of analysts' forecasts.
Plexus president and chief executive officer Dean Foate said after markets closed Wednesday that fourth-quarter earnings are expected to be in the range of 46 cents to 50 cents per share on revenue of $390 million to $405 million. Analysts, however, were expecting earnings of 56 cents per share on revenue of $418.3 million, according to TheStreet.com.
Shares of Plexus (NASDAQ PLXS) were down $11.33, or nearly 34 percent, at $22.27 in midday trading Thursday.
Plexus reported net income for the fiscal third quarter ended July 1 of $25.1 million, or 53 cents per share. That compares with a net loss of $21.5 million, or 50 cents per share, in the same period a year ago. The previous year's results include restructuring costs of $27.6 million.
Net sales for Plexus rose 27 percent to $397.4 million from $313.7 million in the quarter.
Plexus also said Wednesday that it will close a plant in Maldon, England, in late 2006 or early 2007 in an effort to cut costs.
The closure will affect 77 employees, the contract electronics manufacturer said. Production from the plant will transfer to a plant in Kelso, Scotland.
The move will result in total restructuring charges of $1 million related to severance, retention bonuses and asset impairment. About $400,000 of the charge is being reported in its third quarter results released Wednesday. |
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