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

To: Rob L. who wrote (2282)	12/18/1997 11:18:00 AM
From: STEFAN BABJAK	Respond to of 6317

PLEXUS CORP (PLXS) 15 1/4 -9 3/4. This is what happens when one major customer makes an adjustment to its production schedule. The sharp retreat in Plexus shares this morning should demonstrate to those invested in the contract manufacturing industry that they may not be out of the woods quite yet, despite the upbeat comments issued by Jabil Circuit and Solectron over the past few days. In fact, it appears that Jabil (JBIL 29 1/2 -2) and Sanmina (SANM 61 3/4 -3) investors are recognizing the potential for a similar situation, following Plexus' warning that fiscal 1st qtr results will come in shy of Wall Street views, due primarily to some customers adjusting near term production schedules. While Wall Street was expecting $0.30 a share for the period, Plexus is saying that it expects to make only $0.21-$0.24 a share, or 20%-30% less than Wall Street was anticipating. It appears that most of the shortfall is the result of one major customer making a shift in its production schedule. But, according to the company, this will be only a temporary problem. Looking forward, Plexus says it expect the pace of sales growth to be more pronounced in the second half of fiscal 1998, as several new customers and new programs come on stream and production begins ramping up on these and other key programs. Long JBIL! Stefan