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Electronics Production | June 24, 2009

Jabil reports a $28.8 million loss

The US-based EMS-provider Jabil reported a $28.8 million loss for its fiscal 3Q/2009, compared to a profit of $38.4 million in the fiscal 3Q/2008.
"End-markets began to stabilize during the quarter while the company continued to strengthen its balance sheet through strong working capital management," said President and CEO Timothy L. Main.

Third Quarter 2009
Net revenue for the third fiscal quarter of fiscal 2009 was $2.6 billion compared to $3.1 billion for the same period of fiscal 2008. GAAP operating income for the third quarter of fiscal 2009 was a loss of $7.8 million compared to income of $63.1 million for the same period of fiscal 2008. GAAP net loss for the third quarter of fiscal 2009 was $28.8 million compared to net income of $38.4 million for the same period of fiscal 2008.

Core operating income for the third quarter of fiscal 2009 was $29.0 million or 1.1% of net revenue compared to $85.3 million or 2.8% of net revenue for the third quarter of fiscal 2008. Core earnings for the third quarter of fiscal 2009 were $8.5 million compared to $52.8 million for the same period of fiscal 2008.



Business Update
"Although the global economy remains in a recession, we see genuine stabilization across most of our end-markets. A stable end-market environment will provide Jabil an opportunity to improve profitability and further strengthen the balance sheet," said President and CEO Timothy L. Main. Through the nine months ended May 31, 2009, the company produced cash flow from operations of $387 million and reduced total debt and securitization balances by $278 million. With more than $750 million in cash and $800 million available under a five-year revolving credit facility, which expires in 2012, Main said Jabil has a solid foundation on which to grow.

Jabil management indicated that with continued end-market stabilization, it expects its net revenue for its fourth fiscal quarter of 2009 to be consistent with its third quarter, in a range from $2.5 billion to $2.7 billion. The company estimated that its core operating income would be in a range from $25.0 million to $50.0 million, driven by continued focus on manufacturing efficiencies and cost reductions.

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