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Strategies & Market Trends : Electronic Contract Manufacture (ECM) Sector -- Ignore unavailable to you. Want to Upgrade?

To: patroller who wrote (1610)	6/17/1998 8:18:00 AM
From: jim heger	Read Replies (1) \| Respond to of 2542

Re: jbl Billion dollar companies that will double their rev in the next 12-18 months don't grow on trees. Just ask one! jh

To: patroller who wrote (1610)	6/28/1998 11:00:00 AM
From: Rosemary	Read Replies (1) \| Respond to of 2542

I found this article about JBL recently written, they just mention the new business which we know is secured, just don't know the who: Slim orders pull Jabil's 3Q down By Ismini Scouras Although Jabil Circuit Inc. posted healthy double-digit sales and net income gains in the latest quarter compared with a year ago, weak customer orders dampened sequential growth, the company reported last week. Revenue in its third fiscal quarter, ended May 31, reached $309.6 million, a 25% rise from $247.6 million in the year-ago period, but a 6% decline from $330.7 million in the second fiscal quarter. Net income went up 18.6%, to $17.3 million, or 45 cents per share, from $14.6 million, or 38 cents per share, a year ago, but fell 14.2% from $20.1 million in the prior quarter. Slowdown in production from 3 Com Corp. in Scotland, weakness from the PC and peripherals sectors, and the General Motors strike have caused Merrill Lynch & Co. Inc. to revise its earnings estimates for the St. Petersburg, Fla.-based contract electronics manufacturer. Merrill Lynch reduced its fourth-quarter EPS projection for Jabil to 31 cents per share from 45 cents. For fiscal 1998, Merrill Lynch reduced its earnings estimates from the $1.90-to-$1.95 range to between $1.75 and $1.80. For fiscal 1999, Jabil is expected to earn $1.95, compared with a previous estimate of $2.20. However, the estimates don't include the acquisition of Hewlett-Packard Co.'s LaserJet facilities, which Jabil agreed to purchase last month. Jabil expects the acquisition-slated to close in August-to add $500 million to $600 million in sales and 10 to 15 cents to earnings in fiscal 1999, according to Merrill Lynch. "On several occasions in the past, Jabil has experienced sharply lower demand from large customers, but has been able to more than replace the sales with new projects in a very short period of time," said Jerry H. Labowitz, an analyst at Merrill Lynch, New York. "The last time the company experienced such a challenge, it was able to successfully replace the business within nine months. We believe the company is currently undergoing a similar adjustment."