The ratings on San Jose, Calif.-based Sanmina-SCI Corp. reflect profitability that lags its electronic manufacturing services (EMS) peers; excess capacity in high-cost geographies; and volatile end-market demand, particularly in communications and computing end markets. These concerns partially are offset by the company's top-tier business position. Sanmina-SCI is a leading provider of EMS for the computing, telecommunications, and data communications industries, generating sales of about $12 billion. The company had about $2 billion in lease-adjusted total debt as of December 2004. The EBITDA margin for the quarter ended December was maintained at about 4%, flat from the preceding quarter, but sustaining a gradual trend in improvement from the 3.6% earned in the year-earlier period. Despite the improvement, Sanmina's profitability remains below
