Sanmina 3Q profit more than doubles on lower costs

Lower interest expenses help Sanmina's profit more than double in 3Q despite sales drop

Associated Press

SAN JOSE, Calif. (AP) -- Sanmina Corp. said Monday that its net income more than doubled in the third quarter, as some of the electronics manufacturing services company's costs fell.

The company's outlook for the fourth quarter was in line with Wall Street predictions, and shares rose 76 cents, or 5 percent, to $16.02 in aftermarket trading.

Net income in the three months ended June 29 rose to $18.7 million, or 22 cents per share, compared with $8.9 million, or 11 cents per share, in the same quarter in 2012.

Excluding the impact of stock compensation costs, restructuring expenses and other one-time items, Sanmina's earnings rose to 40 cents per share from 26 cents per share.

On that basis, the company's latest earnings trumped analysts' consensus forecast of 35 cents per share, according to FactSet.

Revenue fell 4 percent, to $1.49 billion from $1.55 billion. That was slightly better than the $1.48 billion analysts had expected.

Helping boost Sanmina's profit was lower interest expense, which shrank 44 percent to $8.9 million. The company's cost of sales also fell 5 percent to $1.37 billion, although operating expenses rose 13 percent to $78.6 million.

For the current quarter, Sanmina expects adjusted earnings per share of 37 to 43 cents on revenue of $1.48 billion to $1.53 billion. Analysts' average estimates fall within those ranges.

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