TAMPA -- Executives of Jabil Circuit yesterday provided a bullish outlook for the company and the industry, predicting the EMS market will soak up $22 billion in new orders over the next 24 months.

Jabil, which did not provide new guidance, predicts sales to grow 20 to 25% range per year through fiscal 2007. The company forecasts a 25% return on invested capital during that time.
 
The comments came at Jabil's annual analyst day. Executives "spent a large portion of the day highlighting its respectable track record and future opportunities for growth," said Deutsche Bank analyst Chris Whitmore, in a research note.

Jabil said $22 billion worth of new electronics manufacturing orders would be moved into the EMS sector by 2007, more than half from OEMs that currently perform their own manufacturing. According to Whitmore, Jabil forecast OEMs would transfer $11.8 billion worth of products to EMS suppliers. Jabil also said $4.4 billion worth of programs from new customers would come online during that time. The remaining $5.6 billion would come from OEMs paring their EMS supply chains to two to three EMS vendors.

Jabil said it thinks it can win about 20% of this new business -- $4.3 billion to $4.4 billion. (The company says it currently converts about 15% of the potential market into business, Whitmore reported.)

Jabil also said lowered its operating margin target to 5% (from 5 to 6% last year, Whitmore reported. Jabil also seeks to raise its inventory turns by three, to 12 per year, by 2007.