Jabil Sees 2Q Charges Of $705M, Affirms 3Q View

ST. PETERSBURG, Fla. (AP) — Jabil Circuit Inc. reported impairment charges totaling $705.1 million for its fiscal second quarter Thursday, but affirmed its earnings and sales forecast for the current period.

Last month the electronics parts maker posted a loss of $42.1 million, or 20 cents per share, for the quarter ended Feb. 28.

After calculating its goodwill impairment — taking into account its declining stock price and customer demand — the company said its loss amounted to $866.1 million, or $4.19 per share.

The charges do not affect core earnings excluding one-time costs, which topped Wall Street forecasts at $27.3 million, or 13 cents per share.

For the quarter ending in May, Jabil backed its forecast for an adjusted loss of 8 cents per share to a profit of 8 cents per share on sales of $2.5 billion to $2.7 billion.

Analysts polled by Thomson Reuters are looking for a profit of 2 cents per share and sales of $2.61 billion.

Jabil shares rose 42 cents, or 7 percent, to $6.43 in morning trading amid broader market gains Thursday. The stock is still down about 11 percent year-to-date.