HP Miss Not Good For Contract Manufacturers FLEX, JBL

The soft results and weak outlook reported last night by Hewlett-Packard (HPQ) is putting some pressure on the contract electronics manufacturers and distributors with close ties to the company.

In a note this morning, Longbow Research analyst Shawn Harrison provided a list of some of companies with significant exposure to HP.

• Flextronics (FLEX) makes printers, storage devices, notebook PCS and servers for HP, which accounts for just under 10% of revenues at FLEX.


• Jabil (JBL) makes servers and printers for HP, and ranks among its 10 largest customers.


• Celestica (CLS) produces HP branded servers, storage products and printer cartridges; HP ranks among its 10 largest customers.


• For electronics distribution giant Avnet (AVT), HP represents about 10% of revenue at its technology services group.


• The company accounts for just under 10% of the comparable unit at rival distributor Arrow (ARW).

In today’s trading:

• Flextronics is down 8 cents, or 3.2%, to $2.40.


• Jabil is down 22 cents, or 3.9%, to $5.41.


• Celestica is down 7 cents, or 1.9%, to $3.62.


• Avnet is down 64 cents, or 3.4%, to $17.98.


• Arrow is down 40 cents, or 2.2%, to $17.56.