Electronics Production | September 28, 2010
Jabil with mixed signals
Florida-based EMS-provider Jabil Circuit posted revenues below Wall Street estimates. However, earnings for the fiscal 4Q were up due to stabilising demand.
"Our business continued to show strength through the quarter, allowing us to post record revenue and earnings for Jabil's fourth quarter and the full fiscal year," said Timothy L. Main, President and CEO of Jabil. "We are particularly pleased to post core operating margins above four percent as we continue our push into differentiated services and a more cost effective operating model." Fourth Quarter 2010 Net revenue for the 4Q/2010 (ended August 31, 2010) was USD 3.9 billion compared to USD 2.8 billion for the same period of fiscal 2009. GAAP operating income for the 4Q/2010 was USD 103.0 million compared to USD 43.1 million for the same period of fiscal 2009. GAAP net income for the 4Q/2010 was USD 58.7 million compared to USD 5.5 million for the same period of fiscal 2009. Core operating income for the 4Q/2010 was USD 157.0 million or 4.1% of net revenue compared to USD 65.4 million or 2.3% of net revenue for the same period of fiscal 2009. Core earnings for the 4Q/2010 were USD112.1 million compared to USD 33.4 million for the same period of fiscal 2009. Fiscal Year 2010 Net revenue for the fiscal year was $13.4 billion compared to $11.7 billion for fiscal 2009. GAAP operating income for the fiscal year was $327.6 million compared to a loss of $910.2 million for fiscal 2009. GAAP net income for the fiscal year was $168.8 million compared to a loss of $1.2 billion for fiscal 2009. Core operating income for the fiscal year was $490.9 million or 3.7 percent of net revenue compared to $246.8 million or 2.1 percent of net revenue for fiscal 2009. Core earnings for the fiscal year were $330.4 million compared to $132.0 million for fiscal 2009. Business Update "As underlying demand trends appear to be stable, our continuing penetration into high growth markets and differentiated services are driving continued revenue growth and margin expansion," said Timothy L. Main, Jabil's President and CEO. "Expectations for our first fiscal quarter of 2011 place the company on path to post another record year in fiscal 2011," Main said. Jabil management indicated that it expects net revenue for its fiscal 1Q/2011 to range from USD 3.9 billion to USD 4.0 billion. Jabil estimated that its core operating income for its 1Q/2011 will range from USD 165 - 175 million or 4.2 - 4.4% of net revenue.