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

To: AlienTech who wrote (3920)	5/24/1998 11:47:00 AM
From: patroller	Read Replies (1) \| Respond to of 6317

I'am sure everyones seen this ,is this writ'in by keith Dunn brother? Jabil joins buying blitz By Darrell Dunn Jabil Circuit Inc., which in the past has declined to partake in the acquisition frenzy that's swept the contract electronics manufacturing industry, last week signed an agreement to purchase two printed-circuit-board operations from Hewlett-Packard Co. As part of the agreement, financial terms of which were not disclosed, Jabil will assume manufacturing responsibility for all formatter-card production related to HP's LaserJet product line, which analysts believe could result in as much as $500 million in annual revenue. The transaction is expected to close Aug. 31. Jabil will acquire the printed-circuit-board assembly assets of HP's LaserJet Solutions Group Formatter Manufacturing Organization. Included are a 70,000-sq.-ft. plant in Boise, Idaho, and a 40,000-sq.-ft. plant in Bergamo, Italy. Jabil, a contract electronics manufacturer based in St. Petersburg, Fla., is expected to offer jobs to those plants' 600 employees. Without making an acquisition, Jabil has quickly become the world's fourth-largest CEM. The company's revenue grew to $978 million in fiscal 1997 from $173 million in fiscal 1992. Through the first half of fiscal 1998, the company has reported revenue of $651 million. "People have gotten a mistaken impression based on our track record," said Thomas Sansone, Jabil's president. "We've not been against acquisition. ... It's just that we have an approach to the business that doesn't necessarily work with every factory we see." The addition of as much as $500 million in new business from HP could push Jabil near the $2 billion mark in annual revenue in 1999. In 1997, HP shipped more than 2.2 million laser printers and held a commanding 70% share of the laser-printer market, according to Dataquest Inc., San Jose. The acquisition will also provide Jabil with new geographic bases. In addition to its headquarters, Jabil currently has plants in San Jose; Auburn Hills, Mich.; Guadalajara, Mexico; Livingston, Scotland; and Penang, Malaysia. With that kinda growth ,what is it that would make anyone want to sell ,only one thing this quarters earning ,as we all know its not what you make but what are you going to make ,in JBL case I'd say thats more money at least for the next year an a half.JMHO patroller