Jabil Posts FY 2016 Net Revenue of $18.4B

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Jabil Circuit Inc. has reported preliminary, unaudited financial results for its fourth quarter and full fiscal year, ended August 31, 2016, including fourth quarter net revenue of $4.4 billion and record fiscal year net revenue of $18.4 billion.

For the fourth quarter of fiscal year 2016, U.S. GAAP operating income was $93.8 million and U.S. GAAP net diluted earnings per share was $0.20. For fiscal year 2016, U.S. GAAP operating income was $522.8 million and U.S. GAAP net diluted earnings per share was $1.32.

For the fourth quarter of fiscal year 2016, core operating income was $108.3 million and core diluted earnings per share was $0.28. For fiscal year 2016, core operating income was $630.3 million and core diluted earnings per share was $1.86.

“Our fiscal 2016 was characterized by a blend of exceptional performance, significant variability, excellent cost control and wonderful customer care,” said CEO Mark Mondello. “I couldn't be more pleased with our team in terms of effort and commitment, as they did a brilliant job of controlling what they could control during the year.

“In fiscal 2017, we’ll continue to deliver upon our recently communicated capital return framework, ensure our global operations are efficiently managed to support our customers and continue to aggressively grow key areas of our business.”

(U.S. GAAP net diluted earnings per share for the first quarter of fiscal year 2017 are currently estimated to include $0.04 per share for amortization of intangibles, $0.13 per share for stock-based compensation expense and related charges and$0.32 to $0.21 per share for restructuring and related charges.)

Restructuring Alignment Plan

In addition, Jabil announced its intention to realign the company's global capacity and administrative support infrastructure in order to optimize organizational effectiveness in a more moderate growth environment. The company estimates that the realignment shall result in approximately $195 million in total charges over a two-year period.

It is currently estimated that $120 million to $150 million will be recorded in fiscal year 2017 and the balance during fiscal year 2018. Jabil estimates that the cash component of these actions is $50 million, of which $25 million will be incurred in fiscal year 2017.