Sharp fall in Jabil Circuit net income
Jabil Circuit, Inc.(NYSE:JBL) declared its fiscal fourth quarter results on Wednesday. Its net income has fallen 28 percent due to higher costs and lower demand. The company has said that the demand had been weak for most of its businesses. Also, it had incurred high costs for starting a new program in its specialized services unit. Additionally, there was a onetime expenditure of $5.9 million. However, even after taking these factors into consideration, profits are still below analysts' estimates, although sales were better than expectations.
Will JBL Rebound After Today’s Slump? Find Out Here
Net income has fallen to $82.8 million from $114.3 million, resulting in the earnings per share declining from 52 cents per share to 39 cents a share. Revenues rose from $4.28 billion to $4.34 billion, an increase of 1.4 percent. Analysts had estimated $4.23 billion and earnings per share of 5.58 cents. While selling, general and administrative expenses rose 7 percent, research and development costs increased 9 percent.
For the fiscal year 2012, Jabil Circuit's net income rose 4 percent, to $394.7 million from $381.1 million, its earnings per share increasing to $1.87 from $1.73. Revenues also rose from $16.52 billion to $17.15 billion, up 4 percent.
The Jabil Circuit stock declined 10% to $18.90 on heavy volume.
New York Times to make a windfall on Indeed stake sale
Meanwhile, The New York Times Company(NYSE:NYT) has said that it is going to divest its minority stake in the job listing website Indeed.com and expects to make a profit of $100 million from the sale. Connecticut-based Indeed considers itself the world’s no. 1 job site.
The buyer is Recruit Company Limited, a job information company in Japan. Just a day before this announcement, the Times had also closed the sale of The About Group to Barry Diller's IAC for $300 million.
On Wednesday, the Times stock closed unchanged at $9.60.