Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Jabil Circuit (JBL) -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (5866)	9/21/2001 10:52:38 AM
From: Return to Sender	Read Replies (1) \| Respond to of 6317

Harry I am still listening but here are some conference call notes on JBL: Product Segment Results Communications: Up 4% Mostly due to the integration of Marconi Computers: Down 17% - Loss of lower end notebook business a factor here Peripherals: Down 40% - Soft end market demand, plus inventory correction Consumer Products: Up 2% - Mostly Set-Top Boxes starting to ramp up Automotive: Down 7% - New model change overs the biggest factor The integration of Marconi has gone well. They are excited about the communications and optical business etc... once orders pick up. INTC is expected to be biggest customer in 2002. Expectations for Q 1 2002 Communications: Up 5 to 7% - Expected to be 60% of revenue from this segment Consumer Products: Up 40 to 50% - Set-Top Boxes higher margins - 12 to 14% Computers: Down 50% on loss of notebook assembles - 6 to 8% of mix Peripherals: Down 18% - Weak demand - 15 to 17% Automotive: Same: 5 to 6% of mix corporate-ir.net JBL upgraded by Morgan Stanley to Outperform from neutral: biz.yahoo.com From Briefing.com: 7:10AM Jabil Circuit (JBL) 15.00: Following last night's earnings report and reduced Q1 guidance, Merrill Lynch cuts FY02 cash EPS to $0.62 from $0.95 and revenue to $4.175 bln from $5.26 bln. I will try to get more. BTW I bought some RFMD at 19.90 for a trade. Thanks for the link! RtS

To: Johnny Canuck who wrote (5866)	9/22/2001 8:29:48 AM
From: Return to Sender	Respond to of 6317

Jabil ends fiscal year in a slump sptimes.com Net income tumbles in the fourth quarter due to weakened demand, but the company's outlook remains positive. By KRIS HUNDLEY © St. Petersburg Times, published September 21, 2001 ST. PETERSBURG -- Despite a 76 percent drop in earnings in the last quarter and continued weakness in general demand for circuit boards, Jabil Circuit Inc. said it will be looking for acquisitions and expects its business to stabilize in the coming year. Jabil, which makes electronic components for companies such as Cisco, Dell and Hewlett-Packard, reported quarterly and year-end results after the market's close Thursday. In the fourth quarter ended Aug. 30, the company had revenues of $944-million, down from $1.1-billion a year ago. Net income for the three months was $11.2-million, compared with $47.1-million a year earlier. Earnings per share were 6 cents, down from 24 cents a year prior. Excluding non-recurring charges tied to the previously announced acquisition of some manufacturing plants from Marconi Communications, as well as restructuring charges, the company had earnings of 13 cents per share, nearly matching consensus estimates of analysts of 14 cents per share. For the year, Jabil reported sales of $4.3-billion, compared to $3.6-billion in fiscal 2000. Net income and earnings per share for the year were $118.5-million and 59 cents, down from $145.7-million and 78 cents a year ago. Jabil's stock closed Thursday at $15 a share, down 63 percent from a 52-week high of $40.99 on Feb. 1. During a post-market conference call, Jabil executives said they didn't expect last week's terrorist attacks in New York City and Washington, D.C., to have a significant impact on its business. "In the short-term, there may be a negative impact if it delays end-market recovery," said Tim Main, Jabil's president and chief executive. "But the short-term logistical impact is minimal. The supply lines are open again." While Main described the just-ended fiscal year as "clearly challenging," he said the company reduced inventory in the last quarter by $99-million and improved inventory turns. As part of its restructuring, the company also laid off an undisclosed number of workers and closed a plant in Massachusetts. A year ago, Jabil had about 3,000 workers at its facilities in St. Petersburg; it has repeatedly declined to provide updated information about its local employment. "We believe Jabil's position in the EMS (electronic manufacturing services) industry continues to be very strong despite current market conditions," Main said. "We are gaining share with our top customers as many of them move to reduce their total number of suppliers, and we are winning production opportunities with new customers." Jabil said it has been selected by Agilent Technologies to be a principal worldwide supplier; won a new set-top box program with Hughes; and has signed a three-year manufacturing agreement with Intel, which will become one of Jabil's top 10 customers as a result. As part of that agreement, Jabil will purchase an Intel plant in Panang, Malaysia, adding about 900 people. Despite Main's cautious optimism, he said Jabil expects revenues for the quarter ending in November to be flat to slightly down, at $900-million to $950-million. Earnings for the first quarter, excluding one-time charges, are projected to be 11 cents to 13 cents per share. "In the first quarter of 2002, we'll still be absorbing a steep oversupply, but we'll be replacing our PC business with new customer wins and seeing modest acquisition growth," Main said. "We expect a more level environment than during our last (conference) call due to continuing wins in new programs." - Kris Hundley can be reached at hundley@sptimes.com or (727)892-2996.

To: Johnny Canuck who wrote (5866)	9/22/2001 10:19:58 AM
From: Return to Sender	Read Replies (1) \| Respond to of 6317

More from the JBL Conference Call. I cannot vouch for 100% accuracy of these notes. I noticed some mistakes in my earlier notes. corporate-ir.net Full year 2001customers 10% or more were: CSCO 23% - Relationship remains very strong - Could be over 20% in 2002 as well Dell 14% - Notebook manufacturing will be run out this quarter - Should drop but still a customer Business Unit Revenue breakdown for 2001- Expectations for 2002 Communications: Was 52% - Expected to be 60% - Up 5 to 7 % Peripherals: Was 18% - Down 18% - Weak demand - Expected 15 to 17% Consumer Products: Was 9% - Set-Top Boxes higher margins - Up to 12 to 14% Computers: Was 16% - Down 50% - Expected to fall to 6 to 8% of mix Automotive: Was 5 to 6% of mix - Expected to be same at 5 to 6% Expectations for 2002 are based mostly on already defined revenue sources. Management expects that the current secular trend towards outsourcing by OEM's will prove to be more important than questions about end user demand in these expectations. While revenues were down 10% in 2001 margins actually improved. Business opportunities include acquisitions and OEM (plant) divestitures. Hungary and Mexico sites integration completed. PC business being lost is generally going to Asia. Not a great loss as it is a commodity business. End markets are stabilizing. The 2002 numbers are expected to add up to 75 to 80 cents. I believe that early in the call they stated expectations came from 50% already identified sources but in the Q & A management made this sound like it was coming from almost all already identified sources. They seem to feel that although Q 1 will be flat to slightly down that the end markets have stabilized enough to project these numbers with confidence. Ten percent customers in 2002 are expected to be CSCO ( Probably 20% or more ), Marconi and Intel. Others could join this list. I know LTX and an unnamed server company are included in the mix. The business they are loosing in the PC area is a lower margin business. Some of it is going to Asian manufacturers where cost is lower but quality of manufacturing is too. Some of it is simply being realigned by the OEM's to reduce the number of EMS companies they do business with while improving geographical logistics. At any rate Jabil seems to feel the loss of low margin business is hardly worth worrying over. They have actually increased margins at a time when other companies are having a difficult time maintaining profitability. There business in 2001 was geographically 50% US, 22% Latin America, 17% Asia and 12% in Europe. In 2002 that is expected to be 60% aggregate in the America's and approximately 20% each in Asia and Europe. Jabil is closing the Bedford plant. They will be integrating the Intel plant they have acquired from Intel located in Panang, Malaysia this quarter. All in all I felt it was a good call. Although they are losing some low margin business with Dell and HWP they have signed deals Agilent Technologies. They have the new set-top box program with Hughes which is higher margins. They have signed a three-year manufacturing agreement with Intel and seem to be very excited about that. Their relationship with Cisco sounds very strong. They reminded analysts that they manufacture a wide range of optical switching gear, stackable hubs, commodity routers and ATM switching gear. Demand may be down from its high points but companies are still going to need some of these products and the margins are good for JBL. My concerns are simply that the terrorist actions on Sept 11, 2001 may slow the economy more than JBL may have noted thus far. However if their expectations prove to be conservative then the stock will definitely outperform in my opinion because they have already proven that the quality of the contracts they are winning is more important than any of the business they may be losing. Higher margins are coming both from good corporate management and the quality of their manufacturing services making them a preferred provider of EMS services outside of the commodity business. RtS