"Flextronics has plants in 30 countries, including the US. * * * Flextronics has about three-quarters of its manufacturing capacity in low-cost countries, including China, Brazil and Ukraine.
"While wage costs in the US have been about flat in recent years, they have been rising 20% a year in China, a trend Mr [Mike] McNamara[, chief executive of Flextronics, in an interview Friday (Jan 4, 2013)] expects to continue for at least five years. He said labor costs for Flextronics rose about 30% last year in Malaysia and 40% in Indonesia.
"The company's sales in the year ending March 31 are likely to be about $23.9 billion, down 19% from a year earlier, analysts at Raymond James & Associates Inc estimate. That decline is mainly due to decisions by Flextronics to shed certain unprofitable or low-margin operations, said Brian Alexander, a Raymond James analyst.
Note:
(a) In print, the following online paragraph does not appear: "Mr McNamara said Flextronics is the world's second-largest company in that business, after Hon Hai Precision Industry Co, known as Foxconn and based in Taiwan.
(b) Once a behemoth, Flextronics is overshdowed by a start-up called Foxconn.