The ratings on San Jose, Calif.-based Sanmina-SCI Corp. reflect profitability that lags the company's electronic manufacturing services (EMS) peers; excess capacity in high-cost geographies; and slow end-market demand in high volume server and desktop computer end markets. These concerns partly 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 $11.7 billion for fiscal year 2005. The company had about $1.8 billion in lease-adjusted debt as of March 2006. Revenues for the March quarter declined 7% from the year-earlier quarter, continuing a four-quarter trend of weakness in its PC end-markets. Sanmina builds and configures desktop PC's for The Lenovo Group, a brand that
