Jabil updates quarterly guidance
Jun 13, 2006
Jabil Circuit Inc (NYSE:JBL), said it expects its fiscal 2006 third quarter revenue to be consistent with the range previously provided of $2.5 billion to $2.6 billion and said it expects to achieve under accounting principles generally accepted in the United States of America ("GAAP"), earnings per share of approximately $0.26 to $0.30 cents per diluted share. Core earnings per share are expected to be $0.33 to $0.37 per diluted share versus its original guidance of $0.43. (Jabil defines core earnings as GAAP net income before amortization of intangibles, stock-based compensation expense, acquisition-related charges, restructuring and impairment charges and other income/loss, net of tax. Jabil defines core earnings per share as core earnings divided by the weighted average number of outstanding shares determined under GAAP. Jabil reports core earnings and core earnings per share to provide its investors with an alternative method for assessing earnings and earnings per share from what it believes to be its core manufacturing operations. See the supplemental information below.)
The shortfall in earnings versus previous guidance was driven primarily by operational issues within the company's electromechanical operations and with certain production and repair facilities in the America's region.
"We are disappointed with our financial performance in the third fiscal quarter of 2006 and are committed to improving our operational and financial performance," said President and Chief Executive Officer, Timothy L. Main. "Despite these short-term challenges, we are optimistic about the future. Revenues continue to show strong growth and we continue to expect core earnings for the quarter and for the year to exceed prior year levels."
Jabil will hold an update conference call tomorrow morning at 8:30 am EST live on the Internet at http://jabil.com to further discuss the contents of this press release. The company will announce full financial results for fiscal 2006 third quarter on Wednesday, June 21, 2006 at 4:30 EST. Replays of each call will be available for replay on the web at http://jabil.com located in the investor relations' section.