Jabil Circuit Profit Falls

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 [e-mail]

(END) Dow Jones Newswires

September 21, 2016 17:25 ET (21:25 GMT)

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