The rating on Sanmina-SCI Corp. reflects its participation in the highly competitive and cyclical electronic manufacturing services (EMS) sector and an "aggressive" financial risk profile (as defined by Standard&Poor's Ratings Services' criteria). We believe Sanmina will experience revenue declines in 2012 due to soft end-market demand and an uncertain macroeconomic environment. However, we expect the company will maintain its latest-12-month EBITDA margins in the 5% area as profit modestly improves during the second half of fiscal year 2012 as the inventory correction in the IT supply chain starts to abate. Sanmina offers vertically integrated manufacturing services to its original equipment manufacturers (OEMs), in which it assembles key system components and subcomponents. Standard&Poor's views Sanmina's business risk
