News

ST. PETERSBURG, FL – Jabil yesterday said it expects fiscal second-quarter revenues to fall $250 million to $350 million, to $3 billion to $3.1 billion, on seasonality in consumer demand.

For the period ending Feb. 28, the firm forecasts core operating margins of 2.2 to 2.4%. Capital expenditures of $60 million to $80 million are estimated, depending on completion of ongoing building expansions. Capital expenditures for the full fiscal year remain in an estimated range of $250 million to $300 million.

Jabil made the comments during its regularly scheduled analysts quarterly conference call.

The company forecast its EMS division revenues to increase 2% sequentially. The group made up 59% of the company’s overall revenues last quarter. Automotive, and computing and storage are expected to be flat. Industrial, instrumentation and medical are forecast to drop 3%. Networking will rise 3%, and telecom will jump 25%, a result of a new relationship with Nokia Siemens Networks.

Consumer sales, which make up 36% of the company’s revenues, are forecast to drop 30% in the quarter.

Overall first half fiscal 2008 sales of $6.4 billion are estimated, up 4% year-over-year.

The firm estimates second-half fiscal year revenues of $4.45 billion for the EMS division, $2 billion for consumer; and $350 million for aftermarket services. Core operating income expectations are at least 4% for EMS, approximately 2.5% for consumer, and 7% for aftermarket services.

“We're extremely well-positioned to see continued growth in revenue and core operating income for the first half of this fiscal year and over the same period for fiscal 2007,” CFO Forbes Alexander said.

For the year, the company guided for revenues of $13.4 billion, with core operating income of 3.1 to 3.6% of revenue. That would return year-over-year growth of 8% in revenues and 33% in core operating income. Cash flow from operations of $600 million is expected.