Blackberry cutbacks lead Jabil to expect lower earnings

By Frank Antosiewicz
Correspondent

Published: September 27, 2013 2:58 pm ET

Related to this story

Topics Injection Molding, Telecommunications
Companies & Associations Nypro Inc.

ST. PETERSBURG, FLA. — The cutbacks at Canadian smart phone maker Blackberry Ltd. are causing contract manufacturer Jabil Circuits Inc .to scramble to lower its earnings expectations for next year, according to a webcast discussing its latest earnings.

Jabil officials said that they are anticipating charges of $35 million to $85 million in fiscal 2014 due to ongoing discussions with Blackberry. The company also lowered the range for its guidance for net revenue in the first quarter to $4.35 to $4.65 billion.

“We’re in discussions in how to wind down the relationship,” said Jabil CEO Mark Mondello during the presentation.

Jabil said that during the recently completed fiscal year, Blackberry accounted for 12 percent of its business, second only to Apple (19 percent). However, it forecast that its High Velocity segment that includes Blackberry will decline by 25 percent.

Mondello said Jabil has significant infrastructure in place supporting Blackberry. The unspecified cuts will affect both infrastructure and personnel.

Blackberry announced Sept. 20 that it was targeting a 50 percent reduction in operating expenditures by the end of the first quarter of 2015. It also said that it was reducing its worldwide workforce by 40 percent, which means about 4,500 less employees.

Jabil said Wednesday that it had record earnings, including $4.8 billion in sales for the fourth quarter and $18.3 billion for the 2013 fiscal year.

Jabil added Nypro Inc. of Clinton, Mass., to its fold a few months ago.


Comments

Blackberry cutbacks lead Jabil to expect lower earnings

By Frank Antosiewicz
Correspondent

Published: September 27, 2013 2:58 pm ET

Post Your Comments


Back to story


More stories

Image

New medical firm buys Clairson Plastics

September 19, 2014 4:33 pm ET

Custom injection molder Clairson Plastics is being sold to a new start-up that plans to dive into the medical market with a new dialyzer, a key...    More

Image

Hong Kong's TK eyes expansion, may buy Nypro Tool operation

September 19, 2014 2:49 pm ET

Hong Kong-based mold maker and plastics processor TK Group (Holdings) Ltd. said it's reached a tentative agreement to buy a tooling factory in...    More

Exo-s buys injection and blow molder in Mexico, expands footprint

September 19, 2014 2:15 pm ET

Custom molder Exo-s Inc. has bought an injection and blow molding operation in San Juan del Rio, Querétaro, Mexico.    More

Image

Smartphone work adds 52 percent to sales for China's Eva Precision

September 18, 2014 4:37 pm ET

Growth in supplying the smartphone and automotive industries helped Chinese processor Eva Precision Holdings Ltd. push injection molding sales up 52...    More

Image

Nolato Contour beefs up white room molding capabilities

September 18, 2014 11:56 am ET

Nolato Medical has extended its controlled environment options to include a white room at its Baldwin, Wis., Nolato Contour plant.    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events