Flex Ltd. reported its financial results for the three and six-month periods ending September 27, 2024, revealing a decline in net sales and net income compared to the previous fiscal year. For the three-month period, net sales were $6,545 million, a decrease of approximately 6% from $6,933 million in the same period last year. For the six-month period, net sales totaled $12,859 million, down 7% from $13,825 million. The decline was attributed to reduced sales in both the Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS) segments, with FAS sales decreasing by 0.3% and FRS sales declining by 11%.
Despite the drop in sales, Flex Ltd. experienced an increase in gross profit for the three-month period, rising to $531 million from $519 million, resulting in a gross margin improvement from 7.5% to 8.1%. Operating income also increased to $297 million from $281 million, reflecting a rise in operating margin from 4.1% to 4.5%. Net income from continuing operations for the three-month period was $214 million, compared to $201 million in the prior year, while net income for the six-month period was $353 million, slightly up from $348 million.
The company’s total current assets increased to $13,351 million as of September 27, 2024, from $12,992 million at the end of March 2024, driven by a rise in cash and cash equivalents to $2,601 million. However, total current liabilities also rose to $9,306 million, leading to a decrease in total shareholders’ equity to $5,003 million from $5,325 million.
Flex Ltd. announced a strategic acquisition of Crown Technical Systems for $325 million, expected to close in the third quarter of fiscal year 2025. This acquisition aims to enhance Flex's portfolio in power products and expand its offerings in utility and data center markets.
The company also reported restructuring charges of $17 million for the three-month period, up from $1 million in the same period last year, indicating ongoing adjustments within its operations. Additionally, Flex's cash flow from operating activities for the six-month period was $659 million, significantly higher than $363 million in the prior year, reflecting improved operational efficiency.
Overall, while Flex Ltd. faced challenges in sales and net income, it demonstrated resilience through improved margins and strategic initiatives aimed at long-term growth.
About FLEX LTD.
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