© cumypah dreamstime.com Electronics Production | September 27, 2013
Jabil jumps Blackberry ship
Jabil Circuit, longtime manufacturing partner of Canadian smartphone manufacturer BlackBerry, is looking to discontinue the partnership.
“Delivering record revenues, generating more than a billion dollars of cash flow from operations, and achieving a core return on invested capital of 21 percent are clear highlights of our fiscal year,” said Jabil’s Chief Executive Officer Mark Mondello. “In addition, we are pleased to return nearly USD 200 million in capital to shareholders through dividends and share repurchases, while continuing to thoughtfully invest capital back into the business, both organically and acquisitively, with an eye on long-term earnings growth,” said Mondello. The company reported fourth quarter revenue of USD 4.8 billion and fiscal year revenue of USD 18.3 billion. Jabil’s three reporting segments delivered the following revenue results for the company’s fourth fiscal quarter: Diversified Manufacturing: USD 2.1 billion. Enterprise & Infrastructure: USD 1.4 billion. High Velocity: USD 1.3 billion. “I would like to acknowledge the continued dedication of our employees because it is their efforts and commitment that truly differentiate Jabil and enable us to achieve our goals,” said Mondello. Generally accepted accounting principles (GAAP) operating income for the fourth quarter was USD 88.4 million and USD 511.4 million for the full fiscal year, ended August 31, 2013. GAAP diluted earnings per share for the fourth quarter were USD 0.61 and USD 1.79 for the fiscal year. The company said that USD 89.5 million in restructuring activity during the year and a USD 25.6 million non-cash charge related to a note receivable and related charges in the third quarter impacted the fiscal year GAAP operating income and USD 61.1 million in restructuring activity impacted the fourth quarter GAAP operating income. Core operating income results, excluding amortization of intangibles, stock-based compensation and related charges, restructuring and related charges, impairment of notes receivable and related charges and acquisition costs and purchase accounting adjustments, was USD 721.1 million and core diluted earnings per share was USD 2.26. “We are fortunate to have a strong balance sheet, broad-based capabilities that deliver innovative solutions, outstanding employees and a roster of market-leading customers as we head into fiscal year 2014,” said Jabil CEO, Mark Mondello. Jabil provided guidance for its first fiscal quarter of 2014, which began on September 1st. Fiscal Q1 2014 Guidance:
- Net revenue: USD 4.35 billion to USD 4.65 billion
- Core operating income: USD 165 million to USD 195 million
- Core earnings per share: USD 0.50 to USD 0.60 per diluted share
- GAAP operating income: USD 110 million to USD 140 million
- GAAP earnings per share: USD 0.25 to USD 0.35 per diluted share
- Diversified Manufacturing Services to increase 7 percent.
- Enterprise & Infrastructure to remain consistent.
- High Velocity to decline 25 percent.