Jabil Swings to Q2 Profit on Sales Hike
ST. PETERSBURG, FL -- Jabil Circuit last night announced preliminary results indicate sales rose 4% year-over-year to $3 billion in its fiscal second quarter.
For the quarter ended Feb. 28, the electronics manufacturing services company reports net income of $29.8 million, up from a loss of $866.1 million a year ago, when Jabil took $705.1 million in goodwill charges. EMS sales were up 10% sequentially, while the computing and industrial segments were up 14% each. Consumer sales fell 21% and mobility plunged 30%.
The quarter did reveal continuing problems with component shortages, and inventories rose 10% sequentially as Jabil struggled with component shortages. The company, the world's third largest EMS firm according to the CIRCUITS ASSEMBLY Global Top 50, said it would raise capital expenditures by $70 million in the coming quarter to support a new win from an existing company in the mobility sector.
The component shortages are expected to continue for at least two to three more quarters, company executives said on a conference call Tuesday night. "In the semiconductor area and memory, we are really highly constrained," said Tim Main, president and CEO. "As the economic recovery broadens and starts to touch industrial controls, medical, consumer and even white goods, we are starting to see some supply constraints that we haven't seen in a long time on things like MOSFETs and even some capacitor types."
Jabil guided for fiscal third-quarter revenue of $3.1 billion to $3.3 billion, saying on a conference call last night that it expects 8% sequential growth in EMS sales.
