Jabil Circuit (JBL) Message Board

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Technology Stocks : Jabil Circuit (JBL)

JBL 215.07

-1.4%

3:59 PM EST

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To: patroller who wrote (6023)	6/5/2002 3:47:57 PM
From: rich evans	Read Replies (1) of 6317

Hi all, Flex cc seems a rather drastic change. Marks said in Jan/Feb call that flex would concentrate on rofitibility and due 2 cents a share more each quarter.Net Profit Margins declined instead to about 1.4% from 1.9%. In April, he indicated things were set and no more charges, now we have another 150 mill. PcBs were supposed to be breakeven this quarter- instead we have another loss. To his credit he always said he was not seeing any telecom/datacom - IT recovery. Still doesn't. All the big 4 companies are pretty much breakeven profitwise on a gaap basis with 2.4- 3 bill in quarter revs. JBL has done better with 3% net margins. Hurray for small caps,and BHE and PLXS another examples. But I think JBL is at risk especially with HP. Market has put these stocks in the same low price basket. They are not growing from more outsourcing which seems to be slow in developing and profitless. Marks and another study indicated 25-39 bill more outsourcing this year. Where is it? Not in revs and not in profits. All the announcments of FLEX on Nat Steel deal, Casio, Telia wireless service business is not adding to revs or bottom line. Flex did 3.25 bill in the seasonal slow quarter of March. June was orginally to be 3.4 bill. Then revised to 3.0-3.3 but profits at 12cents at least. So now 6 cents proforma profits before the charge at 3 bill revs. How could this b e with all the new business. SLRs new 4 bill of business was supposed to ramp and be incremental. Looks like replacement. I think it will be more languish time for > 6 more months at least. Now today Ericsson comes out with statements saying they see no recovery in wireless, and could be another year. Not a good scenario. Rich

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