Jabil Circuit, Inc. (JBL) has reported a 33.25 percent plunge in profit for the quarter ended Nov. 30, 2016. The company has earned $88.03 million, or $0.47 a share in the quarter, compared with $131.88 million, or $0.68 a share for the same period last year. On the other hand, Core adjusted net income for the quarter stood at $129.64 million, or $0.69 a share compared with $164.88 million or $0.85 a share, a year ago.
Revenue during the quarter went down marginally by 1.98 percent to $5,104.90 million from $5,207.98 million in the previous year period. Gross margin for the quarter contracted 83 basis points over the previous year period to 8.45 percent. Total expenses were 96.76 percent of quarterly revenues, up from 95.88 percent for the same period last year. That has resulted in a contraction of 87 basis points in operating margin to 3.24 percent.
Operating income for the quarter was $165.61 million, compared with $214.50 million in the previous year period.
However, the Core adjusted operating income for the quarter stood at $209.54 million compared to $248.49 million in the prior year period. At the same time, adjusted operating margin contracted 67 basis points in the quarter to 4.10 percent from 4.77 percent in the last year period.
"I'm really pleased with our strong first quarter results," said chief executive officer Mark Mondello. "In particular, we saw strength in our healthcare, packaging and consumer lifestyles businesses within our DMS segment, combined with yet another solid quarter of execution from our EMS segment, allowing us to deliver excellent results," he added.
For the second-quarter 2017,Jabil Circuit, Inc. expects revenue to be in the range of $4,200 million to $4,500 million. The company expects operating income to be in the range of $39 million to $101 million. It projects diluted loss per share to be in the range of negative $0.18 to $0.18.
Operating cash flow improves marginally
Jabil Circuit, Inc. has generated cash of $151.94 million from operating activities during the quarter, up 4.43 percent or $6.45 million, when compared with the last year period.
The company has spent $164.43 million cash to meet investing activities during the quarter as against cash outgo of $344.13 million in the last year period. It has incurred net capital expenditure of $162.39 million on net basis during the quarter, down 34.80 percent or $86.68 million from year ago period.
The company has spent $148.49 million cash to carry out financing activities during the quarter as against cash inflow of $414.13 million in the last year period.
Cash and cash equivalents stood at $747.42 million as on Nov. 30, 2016, down 33.88 percent or $382.93 million from $1,130.34 million on Nov. 30, 2015.
Working capital drops significantly
Jabil Circuit, Inc. has witnessed a decline in the working capital over the last year. It stood at $226.32 million as at Nov. 30, 2016, down 58.23 percent or $315.52 million from $541.84 million on Nov. 30, 2015. Current ratio was at 1.04 as on Nov. 30, 2016, down from 1.09 on Nov. 30, 2015.
Days sales outstanding went up to 27 days for the quarter compared with 13 days for the same period last year.
Days inventory outstanding was almost stable at 24 days for the quarter, when compared with the last year period.
Debt comes down marginally
Jabil Circuit, Inc. has recorded a decline in total debt over the last one year. It stood at $2,110.91 million as on Nov. 30, 2016, down 2.58 percent or $55.85 million from $2,166.76 million on Nov. 30, 2015. Total debt was 20.02 percent of total assets as on Nov. 30, 2016, compared with 21.20 percent on Nov. 30, 2015. Debt to equity ratio was at 0.88 as on Nov. 30, 2016, down from 0.90 as on Nov. 30, 2015.
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