Benchmark to close facilities, take $50-$60 million charge

Benchmark Electronics Inc. will close some facilities and take a restructuring charge of between $50 million to $60 million for the third quarter in response to the current economic downturn.

For the quarter, which ended September 30, the Angleton, Texas contractor expects to meet analysts' consensus cash earnings estimate, excluding the company's restructuring charges.

Benchmark executives anticipate third quarter revenue to be approximately $260 million. Analysts polled by Thomson Financial/First Call gave consensus estimates for Benchmark's cash EPS and revenue of 11 cents and $314 million respectively.

Benchmark, along with several other contractors, have downsized certain manufacturing operations in order to better navigate through the sluggish economic environment. Benchmark executives did not disclose which of its 16 facilities were slated for consolidation.

"Our attentiveness to market conditions has positioned us well to efficiently and effectively operate in this unprecedented recessionary period for technology spending," said Cary T. Fu, Benchmark's president in a statement. "We will stay the course with our strategic focus and we continue to believe that the long-term fundamentals for the EMS industry remain healthy as the trend toward outsourcing continues."

Analysts speculate that Benchmark might consolidate its facilities in Cork and Dublin, Ireland and East Kilbride, Scotland to streamline its European operations and in the United States look at sites in Mansfield, Mass., and Pulaski, Tenn.