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Electronics Production |
Jabil missed the mark - looking to realign operations
Jabil's third quarter did not meet expectations – forecast current-quarter core earnings below analysts' estimates – and announces a new restructuring plan.
Jabil is going to realign its global operations to more appropriately reflect current market conditions and customer needs.
The company indicated that they began consultation with employees during the third fiscal quarter. Jabil management did not provide specific locations nor in which segment we might see the layoffs.
The company currently estimates that the realignment could result in approximately USD 188 million of charges, including the USD 28 million of charges incurred during the company's third quarter. It is currently estimated that USD 60 to USD 70 million will be recorded in Jabil's fourth fiscal quarter of 2013.
Jabil's three reporting segments delivered the following revenue results for the company's third fiscal quarter:
- Diversified Manufacturing: USD 1.8 billion.
- Enterprise & Infrastructure: USD 1.4 billion.
- High Velocity: USD 1.3 billion.
