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Jabil Circuit Shares Drop On Lower 2nd-Quarter Outlook

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By RICHARD MULLINS, The Tampa Tribune

Published: December 22, 2007

Shares in Jabil Circuit tumbled 21 percent Friday to their lowest point since 2002, after the company released profit forecasts well below Wall Street expectations.

Stock in the St. Petersburg-based electronics maker closed at $14.43, down $3.99, on a day when the Dow Jones industrial average jumped 205 points.

Company documents also disclosed that amid a turbulent year, Chief Executive Officer Timothy Main received compensation valued at about $5.6 million, including salary and stock options.

His salary did not increase during 2007. Any stock options granted in the previous year would have dropped in value along with Jabil's stock price.

Jabil has hit setbacks during rapid growth that has more than tripled its size since 2002. It employs more than 75,000 people around the world.

Main's compensation for the fiscal year ended Aug. 31 includes $1 million in salary, according to a proxy statement filed with the Securities Exchange Commission. His compensation included stock options and other awards worth an estimated $4.2 million. He also received "incremental" costs through personal use of golf club memberships associated with company business.

Excluding charges, the company expects a profit of 16 to 20 cents a share for its second quarter, which ends Feb. 29. Analysts polled by Thomson Financial were expecting profit of 31 cents a share. Analyst estimates typically exclude one-time charges.

Jabil predicted quarterly revenue of $3 billion to $3.1 billion, but analysts expected net income of $3.15 billion.

Jabil's earnings report included profit for the quarter ended Nov. 30 of $62 million, or 30 cents a share, versus $41.4 million, or 20 cents a share, in the prior-year quarter. Excluding charges, net income was 36 cents a share. Revenue rose 5 percent to $3.37 billion from $3.22 billion in the year-ago quarter.

Information from The Associated Press was used in this report. Reporter Richard Mullins can be reached at (813) 259-7919 or rmullins@tampatrib.com.

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