AP News

Jabil Circuit 4Q net income falls 28 percent


ST. PETERSBURG, Fla. (AP) — Electronic parts maker Jabil Circuit Inc. said Tuesday its net income fell 28 percent in the fiscal fourth quarter on weak demand in most of its businesses and higher costs.

Jabil reported slow demand for most of its businesses, and reported greater costs associated with the start of a new program in its specialized services unit and a one-time charge of $5.9 million. If those factors are stripped out, Jabil's income still fell short of Wall Street estimates. However, its sales were better than expected.

The company's net income declined to $82.8 million, or 39 cents per share, from $114.3 million, or 52 cents per share. Excluding one-time charges, the company said earned 54 cents per share over the three months ended Aug. 31.

Revenue rose 1.4 percent to $4.34 billion from $4.28 billion.

Analysts forecast earnings per share of 58 cents per share and $4.23 billion in revenue, according to FactSet.

Selling, general and administrative costs rose 7 percent during the quarter, while research and development costs rose 9 percent.

For fiscal 2012 Jabil Circuit's net income grew 4 percent, to $394.7 million, or $1.87 per share, from $381.1 million, or $1.73 per share. Revenue increased 4 percent, to $17.15 billion from $16.52 billion.

Looking ahead, the company projects adjusted income of 51 to 62 cents per share in the fiscal first quarter on $4.3 billion to $4.5 billion in revenue. Analysts expect income of 67 cents per share and $4.53 billion in revenue, on average.

"While the macroeconomic climate remains challenging, our long-term goals and competitive position are intact, and we expect earnings to increase between 5 and 10 percent in fiscal 2013," Jabil CEO Timothy Main said in a statement.

The company also said Tuesday that it approved the repurchase of up to $100 million in stock over the next year.

Shares of Jabil Circuit fell 77 cents, or 3.7 percent, to $20.20 in after-hours trading. The stock declined 40 cents to $20.97 during regular trading Tuesday. Over the past year, shares have traded between $15.65 and $27.40.


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