Jabil Circuit fiscal 2Q earnings down 9 percent
Contract electronics manufacturer Jabil Circuit Inc. said Wednesday that its net income decreased by 9 percent in the fiscal second quarter, partly because costs related to its purchase of Nypro were higher than expected.
Jabil agreed to buy Nypro in February for $665 million, saying the deal will expand its materials manufacturing capabilities into the health care and consumer packaging markets, and add depth to its consumer electronics business. The company said Wednesday that its costs related to the deal were about $5 million above its expectations for the second quarter. It thought most of that spending would happen in the third quarter.
Nypro provides manufactured precision plastic products for customers in the health care, packaging and consumer electronics industries.
Jabil earned $88.5 million, or 43 cents per share, over the three months ended Feb. 28. Net income was $97.7 million, or 46 cents per share, a year ago. Jabil made 53 cents per share in the recent quarter, excluding one-time charges. Revenue rose 4 percent to $4.42 billion.
Analysts expected net income of 54 cents per share and $4.39 billion in revenue, according to FactSet.
Jabil forecast adjusted net income of 50 to 58 cents per share on $4.3 billion to $4.5 billion in revenue for its third quarter. Analysts expected net income of 61 cents per share and $4.53 billion in revenue on average.
Shares of Jabil Circuit fell 38 cents, or 2 percent, to $19.10 in after-hours trading.