Solectron Reports Loss of $52.5 Million

Solectron Corp., the world’s largest contract electronics manufacturer, reported a fiscal first-quarter loss of $52.5 million, or 9 cents a share, on sharp declines in its personal computer and telecommunications operations.

Solectron also said it would borrow up to $2 billion, partly to meet its short-term obligation to repurchase some notes due in January. Credit agencies dropped Solectron’s main rating below investment grade to junk status and warned it was faring worse than some rivals as Solectron said it still needs to cut jobs.