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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Mike Buckley who wrote (11466)11/30/1999 1:48:00 AM
From: Exacctnt  Read Replies (2) of 54805
 
Mike, <<<Has anyone considered Jabil Circuits as a King among the outsourcing electronics manufacturers? I don't know if they have twice the market share of their closest competitor, but it might be worth a gander.>>>

If you want to consider outsourcing manufacturers, Solectron (SLR) may be the bigger and better company.

Jabil Circuit, Inc. designs and manufactures electronic circuit board assemblies and systems for major original equipment manufacturers in the communications, computer peripherals, personal computers, automotive and consumer product industries. For the fiscal year ended 8/99, sales rose 57% to $2 billion. Net income rose 61% to $91.5 million. Revenues reflect increased production of communication products. Net income reflects the absence of $20.8 million in acquisition costs.

SLR provides electronics manufacturing services to OEMs who design and sell networking equipment, workstations, personal and notebook computer peripherals, and telecommunications equipment. For the fiscal year ended 8/99, net sales rose 59% to $8.39 billion. Net income rose 48% to $293.9 million. Revenues reflect the growing trend toward outsourcing within the electronic industry. Earnings were partially offset by increased sales of lower margin products.

JBL's market cap is $5.4B versus SLR's $22.8B

Regards
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