By Erin McCarthy
Jabil Circuit Inc. /zigman2/quotes/203847835/composite JBL +1.09% said it swung to a loss in the fiscal second quarter as the contract electronics manufacturer reported a decline in revenue and significant restructuring costs.
For the current quarter, the company forecast an adjusted loss of 20 cents a share to breakeven and revenue of $3.5 billion to $3.7 billion, while analysts polled by Thomson Reuters recently expected a per-share profit of 18 cents and revenue of $3.67 billion.
Jabil supplies circuit boards used in computers, cars and networking and telecom equipment. The company's shares underperformed in 2013, partly as a result of weak sales at Apple and Cisco.
In December, Jabil agreed to sell its aftermarket services business to iQor Holdings, Inc. for $725 million.
For the period ended Feb. 28, Jabil reported a loss of $38.7 million, or 19 cents a share, compared with a profit of $88.5 million, or 43 cents a share, a year earlier. The latest period's results were dragged down $32.2 million in restructuring costs, the company said.
Excluding stock-based compensation, restructuring-related charges and other items, adjusted earnings declined to 10 cents a share from 45 cents a year earlier.
Revenue fell 14% to $3.58 billion.
The company expected adjusted per-share earnings of 5 cents to 15 cents and revenue of $3.5 billion to $3.7 billion.
Jabil's shares closed down 14 cents at $18.26. The stock is up 12% in the last three months.
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