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Jabil: Q3 Revenue Increase; Finalizes Acquisition of Nypro
June 20, 2013 |Estimated reading time: 2 minutes
Jabil Circuit, Inc. has announced preliminary, unaudited financial results for its third quarter of fiscal year 2013. For the quarter, the company's revenue increased 5.1% to $4.5 billion, over the third quarter of fiscal year 2012.
Jabil's three reporting segments delivered the following revenue results for the company's third fiscal quarter:
- Diversified Manufacturing: $1.8 billion.
- Enterprise & Infrastructure: $1.4 billion.
- High Velocity: $1.3 billion.
"We are pleased with our progress on the diversification of our business and the positive benefits it affords the company," said Jabil's CEO, Mark T. Mondello. "We expect this diversification to continue during our fourth fiscal quarter as we finalize our acquisition of Nypro, which is expected to close on the 1st of July," he said.
Other highlights from the quarter included producing $504 million cash flow from operations. "Thanks to the dedication of our global workforce, we have generated $810 million cash flow from operations year to date and are on track to deliver $1 billion for our full fiscal year," said Mondello.
Generally accepted accounting principles (GAAP) operating income for the third quarter of fiscal year 2013 was $103.7 million and GAAP diluted earnings per share were 24 cents. The company said that $28 million in restructuring activity and a $26 million non-cash charge related to a note receivable and related charges impacted GAAP operating income.
Core operating income results excluding amortization of intangibles, stock-based compensation, restructuring and related charges and impairment of notes receivable and related charges was $176.9 million and core diluted earnings per share was 56 cents.
Jabil indicated it expects to incur Nypro-related acquisition costs and purchase accounting adjustments of $10 million during its fourth fiscal quarter. This sum is excluded from the above core operating guidance.
Year over Year Segment Revenue Guidance:
- Diversified Manufacturing Services to remain consistent.
- Enterprise & Infrastructure to remain consistent.
- High Velocity to increase 15%.
In addition to the segment guidance, Jabil announced its intention to realign its global operations to more appropriately reflect current market conditions and customer needs. The company indicated that they began consultation with employees during the third fiscal quarter. Jabil management did not provide specific locations under consideration out of respect for employees, their families, and their representatives, and statutory and consultation periods required. The company currently estimates that the realignment could result in approximately $188 million of charges, including the $28 million of charges incurred during the company's third quarter. It is currently estimated that $60 to $70 million will be recorded in Jabil's fourth fiscal quarter of 2013 and the balance during its fiscal years 2014 and 2015. Jabil estimates that the majority of the $140 million cash associated with these actions will be used in fiscal 2014.
About Jabil
Jabil is an electronic product solutions company providing comprehensive electronics design, manufacturing, and aftermarket product management services to global electronics and technology companies. Offering complete product supply chain management from facilities in 30 countries, Jabil provides comprehensive, individualized-focused solutions to customers in a broad range of industries. Jabil common stock is traded on the New York Stock Exchange under the symbol, "JBL." Further information is available at www.jabil.com.