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June 16, 2004, 5:10 p.m. EDT

Jabil Circuit drops on Q4 outlook

Contract manufacturer hits Q3 targets, shuffles execs

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By Chris Kraeuter, CBS.MarketWatch.com

Repeats previous day's story to correct location of company's headquarters.

SAN FRANCISCO (CBS.MW) -- Jabil Circuit announced late Wednesday a management shuffle and posted fiscal third-quarter financial results that matched what most Wall Street analysts expected.

Shares /zigman2/quotes/203847835/composite JBL -0.61% of the St. Petersburg, Calif.-based contract manufacturer fell, however, as its targets for the fourth quarter fell short of Wall Street's expectations.

Nonetheless, Jabil said business is solid and the company is moving in the right direction.

Shares dropped 8 percent to $25.90 after ending the regular session down 15 cents to $28.05. Jabil makes electronic components and systems used by other companies.

"We believe the outlook for our business is good and the trend to outsourcing remains strong. We are encouraged that the environment has stabilized and believe that the numerous new customer programs in diverse sectors should be a significant driver for growth as we move into fiscal 2005," said CEO Timothy Main.

For the third quarter, which ended May 31, Jabil Circuit reported net income of $40.1 million, or 19 cents a share, on sales of $1.6 billion. During the same quarter last year, Jabil earned $4.5 million, or 2 cents a share, on sales of $1.2 billion.

Excluding charges for amortization of intangible assets, Jabil earned 26 cents a share, matching the consensus target of analysts surveyed by Thomson First Call. Also, analysts had predicted sales of $1.61 billion, on average.

For the fourth quarter, Jabil predicted earnings between 21 cents and 23 cents a share on sales between $1.6 billion and $1.65 billion. Earnings excluding charges are expected to be between 25 cents and 27 cents a share. Analysts had predicted earnings excluding charges of 28 cents a share and sales of $1.69 billion, on average.

For the first quarter, Jabil said it should earn 26 to 28 cents a share on sales between $1.75 billion and $1.8 billion.

As for Jabil's management, the company said Chief Financial Officer Chris Lewis will become the vice president of business development and Treasurer Forbes Alexander will succeed Lewis as CFO.

Lewis said he wanted to expand his experience base at the company.

The company also shuffled the roles of some of its senior vice presidents. See press release.

/zigman2/quotes/203847835/composite
US : U.S.: NYSE
$ 58.99
-0.36 -0.61%
Volume: 803,864
Dec. 3, 2021 4:00p
P/E Ratio
12.87
Dividend Yield
0.54%
Market Cap
$8.46 billion
Rev. per Employee
$123,046
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Chris Kraeuter is a reporter for CBS.MarketWatch.com in San Francisco.

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