Jabil Circuit Swings to Third-Quarter Loss on Restructuring Costs

   By Maria Armental 
 

Jabil Circuit Inc. (JBL) swung to a loss in the fiscal third quarter as the contract electronics manufacturer reported a drop in revenue and significant restructuring costs, continuing a downward pattern from the earlier quarter.

For the current quarter, the company forecast an adjusted loss of 10 cents a share to a profit of 10 cents a share and revenue of $3.7 billion to $3.9 billion. Analysts surveyed by Thomson Reuters recently expected per-share profit of two cents and revenue of $3.78 billion.

For the year, the company backed its earlier profit projections saying it anticipates growth in several key areas.

Based in St. Petersburg, Fla., Jabil supplies circuit boards used in computers, cars and networking and telecom equipment. The company's shares underperformed in 2013, partly as a result of weak sales at Apple Inc. (AAPL) and Cisco Systems Inc. (CSCO).

For the period ended May 31, Jabil reported a profit of $188.3 million, or 93 cents a share, compared with a profit of $93.1 million, or 24 cents a share, a year earlier. Excluding stock-based compensation, restructuring-related charges and other items, adjusted earnings declined to a loss of six cents a share from a profit of 47 cents a year earlier.

Revenue fell nearly 10% to $3.8 billion.

The company warned in March it expected a loss of up to 20 cents a share, well short of the profit analysts were expecting, on revenue of $3.5 billion to $3.7 billion.

Jabil's shares, up 0.9% over the past 12 months, rose nearly 2% to $20.44 in recent after-hours trading.

Write to Maria Armental at [e-mail]

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