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

To: Return to Sender who wrote (5867)	9/22/2001 8:16:32 AM
From: Return to Sender	Read Replies (1) \| Respond to of 6317

Jabil Says 4th-Period Earnings Tumbled, Predicts Delay in Technology Recovery By Nicole Harris Staff Reporter of The Wall Street Journal Jabil Circuit Inc. reported sharply lower fiscal fourth-quarter earnings and executives of the big contract manufacturer warned that last week's terrorist attacks may delay a recovery in the already-reeling technology sector. Jabil, which manufactures products for big technology companies, said business should become more stable in coming months, as customers continue to outsource their manufacturing. For the three months ended Aug. 31, the St. Petersburg, Fla., company reported earnings of $11.2 million, or six cents a share, compared with $47.1 million, or 24 cents a share, a year earlier. Revenue declined 12% to $944.1 million from $1.07 billion. Excluding certain nonrecurring charges and amortization of intangibles, Jabil would have earned $26 million, or 13 cents a share, compared with $47.6 million, or 24 cents a share, a year earlier. The results were in line with Jabil's guidance for operating earnings of 13 cents to 15 cents a share. Jabil and fellow contract manufacturers such as industry leader Solectron Corp., have seen their financial performance suffer as their big tech customers face an industrywide downturn. Investors are concerned that last week's terrorist attacks will further exacerbate the industry's woes. Earlier this week, Solectron posted a 24% decline in revenue and also warned the terrorist attacks could hamper any recovery in the embattled tech sector. Tim Main, Jabil's chief executive, said the "logistical impact" of the terrorist attacks on the company has been minimal though he warned the attacks will have a "modest" impact on Jabil's financial performance. "We would be a lot more bullish if the world wasn't on the cusp of a meltdown," he said on a conference call with analysts. "How much impact it will have, we're not really sure, but we have tempered our enthusiasm for the first quarter. ... We think the impact will be modest at this point." Penny-pinching technology companies are expected to continue to outsource their manufacturing to companies like Jabil. Thursday, Jabil said through a subsidiary it signed a three-year manufacturing agreement with chip company Intel Corp. to assume production of certain peripheral products. public.wsj.com