Chips, hardware down after warnings
By Allen Wan, CBS.MarketWatch.com
Last Update: 11:00 AM ET Dec. 20, 2001
NEW YORK (CBS.MW) -- Contract manufacturers, chip and other hardware stocks
were leading the market lower Thursday, hit hard by poor earnings and outlooks
from Jabil Circuit and Juniper Networks.
The Goldman Sachs Hardware Index ($GHA: news, chart,
profile) fell 2.1 percent, while the Philadelphia
Semiconductor Index ($SOX: news, chart, profile) shed 2
percent.
Jabil Circuit (JBL: news, chart, profile) was the top
decliner on the Goldman Sachs Hardware Index, falling
12 percent after it reported a wider loss for the fiscal first
quarter and warned on 2002.
Its competitors Celestica (CLS: news, chart, profile),
Flextronics (FLEX: news, chart, profile) and Solectron
(SLR: news, chart, profile) were all being sold down on
the poor outlook for the contract electronics
manufacturers. Celestica plunged 9.2 percent, while
Flextronics fell 6 percent and Solectron stumbled 6.8
percent.
Jabil Circuit reported fiscal 2002 first-quarter net income
of $22.1 million compared with $48.3 million for the same
period in 2001. Earnings-per-share totaled 11 cents a
share compared with 24 cents in 2001. The results were
a penny shy of the Thomson Financial/First Call estimate.
Revenue for the quarter was $885 million compared to
$1.1 billion for the same period of fiscal 2001. |
