Jabil Circuit Inc. (JBL, Financial) filed Quarterly Report for the period ended 2009-11-30.
Jabil Circuit Inc. has a market cap of $3.76 billion; its shares were traded at around $17.57 with a P/E ratio of 40 and P/S ratio of 0.3. The dividend yield of Jabil Circuit Inc. stocks is 1.6%. Jabil Circuit Inc. had an annual average earning growth of 8.1% over the past 10 years.JBL is in the portfolios of David Dreman of Dreman Value Management, Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Kenneth Fisher of Fisher Asset Management, LLC, PRIMECAP Management, Jeremy Grantham of GMO LLC.
Gross Profit. Gross profit increased to $231.8 million (7.5% of net revenue) for the three months ended November 30, 2009 from $223.7 million (6.6% of net revenue) for the three months ended November 30, 2008. The increase in gross profit on an absolute basis and as a percentage of net revenue for the three months ended November 30, 2009 versus the same period in the prior fiscal year was primarily due to the realization of certain cost savings associated with initiatives that we commenced in fiscal year 2009 to reduce our cost structure in order to better align with lower demand levels.
Amortization of Intangibles. We recorded $7.1 million of amortization of intangible assets for the three months ended November 30, 2009 as compared to $8.0 million for the three months ended November 30, 2008. The decrease is primarily attributable to certain intangible assets that became fully amortized since November 30, 2008. For additional information regarding purchased intangibles, see Note 8 Goodwill and Other Intangible Assets to the Condensed Consolidated Financial Statements.
Loss on Disposal of Subsidiary. On October 27, 2009, we sold the operations of Jabil Circuit Automotive, SAS, an automotive electronic manufacturing subsidiary located in Western Europe to JCA Acquisition Company Limited, an unrelated third-party. In connection with this sale, we recorded a loss on disposition of approximately $15.7 million, which includes approximately $4.2 million in transaction costs incurred in connection with the sale.
In conjunction with the 2009 Restructuring Plan, we currently expect to recognize approximately $64.0 million in total restructuring and impairment costs, excluding valuation allowances of $13.1 million on certain net deferred tax assets, primarily over the course of fiscal years 2009 and 2010. Of this expected total, we charged $3.5 million of restructuring and impairment costs during the three months ended November 30, 2009 to our Condensed Consolidated Statements of Operations. These charges related to the 2009 Restructuring Plan include approximately $3.2 million related to lease commitment costs and approximately $0.5 million related to fixed asset impairments, offset by a reversal of approximately $0.2 million related to previously recognized employee severance and termination benefit costs.
The $57.2 million in restructuring and impairment charges related to the 2009 Restructuring Plan incurred through November 30, 2009 includes cash costs totaling approximately $50.3 million, of which approximately $19.2 million was paid in fiscal year 2009 and approximately $7.2 million was paid in the three months ended November 30, 2009. The cash costs of approximately $50.3 million consist of employee severance and termination benefit costs of approximately $46.9 million, lease commitment costs of approximately $3.3 million and other restructuring costs of approximately $0.1 million. Non-cash costs of approximately $6.9 million primarily represent fixed asset impairment charges related to our restructuring acti
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Jabil Circuit Inc. has a market cap of $3.76 billion; its shares were traded at around $17.57 with a P/E ratio of 40 and P/S ratio of 0.3. The dividend yield of Jabil Circuit Inc. stocks is 1.6%. Jabil Circuit Inc. had an annual average earning growth of 8.1% over the past 10 years.JBL is in the portfolios of David Dreman of Dreman Value Management, Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Kenneth Fisher of Fisher Asset Management, LLC, PRIMECAP Management, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
During the second quarter of fiscal year 2009, our Board of Directors approved a restructuring plan to better align our manufacturing capacity in certain geographies and to reduce our worldwide workforce by approximately 3,000 employees in order to reduce operating expenses (the 2009 Restructuring Plan). These restructuring activities were intended to address market conditions and properly size our manufacturing facilities to increase the efficiencies of our operations. Based on the analysis completed to date, we currently expect to recognize approximately $64.0 million in pre-tax restructuring and impairment costs and reduce our worldwide headcount by a total of approximately 4,000 employees over the course of fiscal years 2009 and 2010. In addition, we recorded a valuation allowance of $13.1 million on certain net deferred tax assets for fiscal year 2009. The restructuring charges include pre-tax employee severance and termination benefit costs, contract termination costs and other related restructuring costs. The impairment charges include pre-tax fixed asset impairment costs, as well as valuation allowances against net deferred tax assets. This information will be subject to the finalization of timetables for the transition of functions, consultation with employees and their representatives as well as the statutory severance requirements of the particular legal jurisdictions impacted, and the amount and timing of the actual charges may vary due to a variety of factors. Based on the ongoing assessment of market conditions, it is possible that we may perform additional restructuring activities in the future. For further discussion of this restructuring program and the restructuring and impairment costs recognized, refer to Managements Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Restructuring and Impairment Charges and Note 7 Restructuring and Impairment Charges to the Condensed Consolidated Financial Statements. See also Risk Factors We face risks arising from the restructuring of our operations.Gross Profit. Gross profit increased to $231.8 million (7.5% of net revenue) for the three months ended November 30, 2009 from $223.7 million (6.6% of net revenue) for the three months ended November 30, 2008. The increase in gross profit on an absolute basis and as a percentage of net revenue for the three months ended November 30, 2009 versus the same period in the prior fiscal year was primarily due to the realization of certain cost savings associated with initiatives that we commenced in fiscal year 2009 to reduce our cost structure in order to better align with lower demand levels.
Amortization of Intangibles. We recorded $7.1 million of amortization of intangible assets for the three months ended November 30, 2009 as compared to $8.0 million for the three months ended November 30, 2008. The decrease is primarily attributable to certain intangible assets that became fully amortized since November 30, 2008. For additional information regarding purchased intangibles, see Note 8 Goodwill and Other Intangible Assets to the Condensed Consolidated Financial Statements.
Loss on Disposal of Subsidiary. On October 27, 2009, we sold the operations of Jabil Circuit Automotive, SAS, an automotive electronic manufacturing subsidiary located in Western Europe to JCA Acquisition Company Limited, an unrelated third-party. In connection with this sale, we recorded a loss on disposition of approximately $15.7 million, which includes approximately $4.2 million in transaction costs incurred in connection with the sale.
In conjunction with the 2009 Restructuring Plan, we currently expect to recognize approximately $64.0 million in total restructuring and impairment costs, excluding valuation allowances of $13.1 million on certain net deferred tax assets, primarily over the course of fiscal years 2009 and 2010. Of this expected total, we charged $3.5 million of restructuring and impairment costs during the three months ended November 30, 2009 to our Condensed Consolidated Statements of Operations. These charges related to the 2009 Restructuring Plan include approximately $3.2 million related to lease commitment costs and approximately $0.5 million related to fixed asset impairments, offset by a reversal of approximately $0.2 million related to previously recognized employee severance and termination benefit costs.
The $57.2 million in restructuring and impairment charges related to the 2009 Restructuring Plan incurred through November 30, 2009 includes cash costs totaling approximately $50.3 million, of which approximately $19.2 million was paid in fiscal year 2009 and approximately $7.2 million was paid in the three months ended November 30, 2009. The cash costs of approximately $50.3 million consist of employee severance and termination benefit costs of approximately $46.9 million, lease commitment costs of approximately $3.3 million and other restructuring costs of approximately $0.1 million. Non-cash costs of approximately $6.9 million primarily represent fixed asset impairment charges related to our restructuring acti
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