Jabil Circuit Inc. on Monday reported sharply improved revenue and earnings in a first-quarter performance officials say proves their year-old turnaround strategy is sustainable.
"This is about a business transformation, not a recovery," said Tim Main, chief executive officer of the St. Petersburg electronics manufacturer with operations around the globe.
Revenue in the quarter ended Nov. 30 jumped 32 percent to $4.1 billion, up from $3.1 billion a year ago. Net income tripled to $107 million, up from $28 million. Earnings per share hit 49 cents, up from 13 cents.
While Jabil has been getting about two-thirds of its revenue making components for 10 manufacturers, the company has been bulking up its higher-profit-margin business in services and by making more tech products for fast-growing industries in health care and wireless devices such as smart phones.
While sales from parts made for TV sets, printers and routers were up sharper than expected, profit margins there continue to be squeezed. Going forward, a recent seasonal spike in that business sector is not expected to last into 2011, Main said.
In contrast, in the first quarter Jabil got half its profits working for 50 companies and only two of its 10 biggest customers.
He said it's clear from his vantage point that business has confidence in the U.S. economy.
Mark Albright can be reached at firstname.lastname@example.org or (727) 893-8252.