LOS ANGELES (Reuters) - Contract manufacturer Flextronics International Ltd. (Nasdaq:FLEX - news) on Thursday reported a second-quarter net loss and said it was cutting 15 percent of its work force, or 10,000 jobs.
Singapore-based Flextronics reported income of $73 million, or 15 cents per diluted share, excluding amortization and one-time charges. That compared with $104.8 million, or 22 cents, in the year-earlier period.
The company reported a net loss of $329.8 million, or 69 cents per diluted share, compared with net earnings of $49.9 million, or 10 cents, a year ago.
The average estimate of 25 brokers surveyed by Thomson Financial/First Call was for earnings of 16 cents, with a range of 15 cents to 17 cents.
Revenues totaled $3.2 billion versus $3.1 billion a year ago.
Aside from eliminating 10,000 jobs, a cost-saving move, Flextronics will also cut 4 million square feet of manufacturing space, or about 20 percent of its total.
The company took a $399 million charge in the quarter to compensate for the cuts, up from the previously announced charge of $380 million.
``We believe all these restructuring charges are behind us,'' Michael Marks, chairman and chief executive, said in a statement.
Its shares closed up $1.30, or 5.6 percent, at $24.68 on Nasdaq. For the year, Flextronics shares are down 13 percent, in line with weakness in the contract manufacturing sector.
On Oct. 2, Flextronics reaffirmed its second-quarter earnings guidance of 15 cents to 18 cents on revenues of about $3.2 billion.
Late in the quarter, Flextronics began manufacturing the new Xbox (news - web sites) video game console for Microsoft Corp. (Nasdaq:MSFT - news). Under the deal, as many as 150,000 units will be shipped each week for the rest of the year, and could be worth as much as $1 billion a year to Flextronics, analysts have said.
The company also acquired about half of Xerox Corp.'s (NYSE:XRX - news) contract manufacturing operations, which will include around 95 percent of Xerox's office copiers and printers.