The total electronics assembly value was US$1.1 trillion in 2012 and is expected to grow to US$1.5 trillion in 2017, a 6.7% percent compounded annual growth. Fueled by this huge market, the EMS industry is expected to grow from US$419bn in 2012 to US$620bn in 2017.1
Flextronics’ adjusted operating income increased US$22mn or 16% QoQ to US$159mn. GAAP operating income of US$150mn increased US$63mn from US$87mn in the prior quarter, which had reflected US$41mn in restructuring charges. Flextronics from a financial perspective reported a better than expected quarter. The company repurchased an additional 2% of shares during the quarter, pushing the total repurchases this fiscal year to 41mn shares or 6%.
The average ‘Days of Inventory’ increased by 4.8 days leading to increased inventory in the supply chain. The demand is expected to increase by the end of the year due to holiday purchases.