Corporate credit rating: BB/Positive Sanmina Corp.'s reported a 14 percent sequential drop in earnings for the fiscal second quarter, ended March 31, 2001 and said it expected that sales would slow further in the current quarter. Standard&Poor's said that the report will not affect the ratings or outlook on Sanmina. The primary reason for the decline is the lagging sales of Sanmina's communications equipment customers. Standard&Poor's ratings and outlook incorporate exposure to cyclical end markets. Sanmina's solid cash flow generation, solid cash position, and moderate financial profile provide sufficient financial cushion for the company as it weathers the industry downturn.
