BETHESDA, MD – Lockheed Martin has released fourth-quarter and year-end results. Net earnings for the quarter rose 3% to $823 million or $2.05 per diluted share. For the year ended December 31, they increased 6% to $3.2 billion, $7.86 per share. Fourth-quarter net sales were $11.1 billion, up from 2007 sales of $10.8 billion. For the year, they rose 2% to $42.7 billion, up from $41.9 billion last year. Cash from operations for the quarter were $997 million, compared to $425 million in 2007. For the year, the figure came in at $4.4 billion.
EL SEGUNDO, CA – China’s semiconductor industry is expected to contract in 2009, the first time a significant decline has occurred since iSuppli Corp. began gathering statistics on the market – and perhaps for the first time in the history of the nation’s chip business, the firm says.
China’s semiconductor market is expected to decline 5.8% year-over-year to $72 billion in 2009, says iSuppli. The only previous decline iSuppli recorded was in 2008, when revenue decreased a scant 0.1%, essentially a flat year.
“Such a downturn is remarkable for a region long regarded as a vigorous and reliable growth driver for the global semiconductor market,” said Kevin Wang, senior manager of China research at iSuppli. “Even during the disastrous 2001, when global semiconductor revenue plunged by 28.6%, China’s industry managed to surge by 24.4%. With global semiconductor revenue expected to decline by 9.4% in 2009, and with consumer confidence at risk of falling further, China’s semiconductor outlook could dim even more than iSuppli presently forecasts.”
Despite this, iSuppli predicts growth will rebound 9% in 2010, followed by an 11% increase in 2011.
“China’s economy has been increasingly affected by the financial crisis in developed countries since the third quarter of 2008,” Wang said. “Many small consumer electronics factories in Guangdong province closed because of lower sales orders and cash flow problems. Market conditions became even more negative in the fourth quarter of 2008. Most small firms saw their business decline by more than 40%, especially at low-tech, labor-intensive and export-oriented companies.”
To stimulate the economy, the Chinese government cut interest rates four times within two months, beginning in October. Moreover, a stimulus package estimated at around $570 billion will be implemented during the next two years. The government’s Home Appliances for Rural Areas project is an example of just one measure intended to stimulate domestic demand.
Meanwhile, the central government is in the process of making major structural changes in its industrial and commercial sectors through new corporate income tax and labor laws, plus the updated No. 18 Document of the State Council. The No. 18 Document has focused on building China’s high-tech electronics industries since 2000, especially semiconductors and IT. The government plans to further expand support for domestic high-tech and high value-added industries. These new policies will greatly affect future foreign direct investment in China, says iSuppli.
Moreover, the Chinese government will continue implementing an increasing number of national technical standards. In doing so, the central authorities hope to protect the country’s economic stability and national security. Domestic standards also are intended to help shield Chinese companies from their more established international competitors.
HELSINKI, FINLAND – Nokia Corp. has posted a 69% drop in profits for the fourth quarter, stemming from lost market shares and a lackluster demand for its phones during the holiday season. Net profits fell to 576 million euros (US$751 million), compared to 1.84 billion euros (US$2.38 billion) in 2007. Sales fell 19% to 12.66 billion euros (US$16.39 billion), falling short of forecasts. Fourth-quarter handset shipments dropped 15% to 113.1 million units, and handset sales fell 27%. The company saw its operating margin decline to 9.8%, compared to 16.7% in 2007. As a result of its fourth-quarter figures, Nokia lowered its outlook for global industry mobile device volumes. It now expects to see a 10% drop in 2009, compared to an earlier forecast of 5%. The market share for the fourth quarter was estimated at 37%, compared to 40% in 2007. Nokia reported significant loses in the Middle East, Africa, North America and China but expects to keep its market share at 37% for the first quarter. The company also plans to cut approximately 1,000 jobs this year.
SMYRNA, GA -- UP Media Group today announced a series of chats led by several well-known industry experts has been added to the technical conference program of its Virtual PCB Web-based trade show, the industry's only virtual trade show and conference for the PCB design, fabrication and assembly markets.
SAN JOSE, CA -- Sanmina-SCI Corp. reported revenue for the first quarter was $1.42 billion for the period ending December 27, 2008, compared to $1.78 billion for the same period a year ago. This is a Q1 net loss of $25.3 million compared to a net income gain of $7.9 million in the same quarter last year.
GAAP net loss in Q1 was ($25.3) million or ($0.05) diluted loss per share, compared to a net loss of ($9.5) million, or ($0.02) diluted loss per share, in the same period a year ago.
Sanmina-SCI estimated and recorded $10 million of charges in the quarter related to the recent filings for bankruptcy reorganization by Nortel Networks, Inc. GAAP results were impacted by these charges.
Non-GAAP gross profit in Q1 was $95.9 million, compared to gross $130.9 million, for the same period a year ago. Non-GAAP operating income was $31.2 million, compared to $41.1 million, in the same period a year ago.
Non-GAAP net loss in the first quarter was a break-even on diluted earnings per share.
As of December 27, 2008, the ending cash and cash equivalents were $796.8 million compared to $869.8 million for the year ending September 27, 2008.
“We continue to experience weak demand and limited visibility across all of our market segments. To offset this decline, we remain focused on our efforts to reduce cost, improve operating efficiencies and deliver innovative technologies and solutions that offer value to our customers.”
“Sanmina-SCI is financially sound with a strong cash position, adequate liquidity and a healthy debt maturity profile to weather these challenging market conditions. We have learned from our experience of difficult times in the past and are confident we will emerge as an operationally and financially stronger company when market conditions normalize," stated Jure Sola, Chairman and Chief Executive Officer.
Of the 15 substances on the REACH Substances of Very High Concern (SVHC), seven have also been recommended for inclusion on a list of substances subject to authorization (Annex XIV) by the European Chemicals Agency (ECHA).
