Jabil Completes Sale of Mobility Business Early, Cuts 2Q Outlook
December 29 2023 - 5:59AM
Dow Jones News
By Dean Seal
Jabil has closed a deal to divest its mobility business to BYD
Electronic for $2.2 billion earlier than expected and cut its
fiscal second-quarter guidance.
The electronics supplier and manufacturer's chief financial
officer, Mike Dastoor, said Friday that the transaction was closed
ahead of schedule. The company had originally expected the
transaction to close on Jan. 31.
"The earlier close and receipt of funds will enable us to begin
initiating plans to reduce stranded costs and executing a series of
accelerated buybacks throughout FY24," Dastoor said.
As a result of the earlier closing, Jabil is reducing its fiscal
second-quarter revenue guidance to $6.6 billion to $7.2 billion
from a prior range of $7 billion to $7.6 billion.
Earnings are now projected to be 47 cents to $1.07 a share for
the quarter that started Dec. 1, compared with previous guidance
for 77 cents to $1.37 a share.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
December 29, 2023 06:44 ET (11:44 GMT)
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