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 Telecommunications, Injection Molding
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

Best Places To Work: No. 2, B&B Molders LLC

March 3, 2015 1:56 pm ET

Britt Murphey is trying to retire. But he's just having too much fun.    More

Image

Best Places To Work: No. 4, Ayanna Plastics & Engineering Inc.

March 3, 2015 2:39 pm ET

Ayanna Plastics & Engineering Inc., a Clearwater, Fla., injection molder and toolmaker, ranks No. 4 on the Plastics News Best Places to Work list....    More

Image

Best Places To Work: No. 5, Plastics Components Inc.

March 3, 2015 2:50 pm ET

Plastic Components Inc. had a busy 2014: It built a house, earned a patent, spun off a business, added presses and expanded its staff.    More

Image

German molder picks North Carolina for US manufacturing plant

February 26, 2015 4:21 pm ET

UPDATED — German medical goods company Raumedic AG has chosen Mills River, N.C., for its first U.S. manufacturing site and U.S. headquarters.    More

Image

Plastic Omnium makes China investment push

February 26, 2015 4:35 pm ET

Three of the six new plants that automotive molder Plastic Omnium SA plans this year will be in China, part of a broader push it’s making in Asi...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events