Jabil Circuit Profit Falls
September 21 2016 - 5:40PM
Dow Jones News
Electronics supplier Jabil Circuit Inc. reported profit fell by
more than half in the final quarter of its fiscal year, though
revenue slid less than anticipated.
Shares edged 1% lower after hours to $23.50.
The company also said it planned to realign its capacity and
administrative-support infrastructure to "optimize organizational
effectiveness in a more moderate growth environment." It expects to
take about $195 million in related charges over a two-year
period.
The Florida company sells electronics design and production
services to technology companies world-wide, with Apple Inc.
contributing a chunk of revenue. In prepared remarks Wednesday,
Chief Executive Mark Mondello commended the company's employees for
"controlling what they could control during the year."
In June, Mr. Mondello said weakness would continue to drag the
company's diversified manufacturing business. On Wednesday, the
company projected revenue in that segment—which is dependent on the
consumer-products industry—will drop 12% in the current quarter
from a year earlier.
For the current quarter, Jabil said it expects overall earnings
of 54 cents to 74 cents a share on $4.8 billion to $5 billion in
revenue. Analysts are projecting 62 cents a share on $4.88 billion
in revenue.
During the quarter ended Aug. 31, Jabil earned $38.1 million, or
20 cents a share, down from $87.7 million, or 45 cents a share, a
year before. Excluding stock-based compensation expenses,
restructuring charges and other items, the company earned 28 cents
a share, down from 53 cents a year earlier.
Revenue slipped 5.3% lower to $4.43 billion. The company had
forecast 15 cents to 35 cents in adjusted per-share profit on
revenue of $4.15 billon to $4.35 billion.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
September 21, 2016 17:25 ET (21:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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