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Stocks J / Jabil Circuit, Inc.
|Subject: Re: Good results reported||Date: 6/23/2007 9:32 AM|
|Author: ultrabrite||Number: 858 of 860|
Seeking Alpha's website has the transcript of the recent JBL conference call. I have excerpted a section from the CFO and I encourage all interested parties to check out the full version...
Jabil Circuit, Inc.
F3Q07 Earnings Call
June 21, 2007 4:30 pm ET
Forbes Alexander - Chief Financial Officer:
...An update to restructuring; we continue to manage our overall rationalization plan according to our previously announced plan. During the third quarter, we recorded charges of approximately $25 million. Total charges recorded to date against our overall plan are $153 million. During the quarter, cash payments associated with these restructuring activities were approximately $13 million. Total cash payments of $57 million.
We continue to expect our total restructuring charges to be at the high-end of the $200 million to $250 million range we previously announced. The cash costs of such charges for this plan remain an estimate in the range of $150 million to $200 million.
With regard to capacity, as we've previously discussed, additional square footage in capacity is currently being added in China, Poland, the Ukraine and India. These facilities are expected to ramp production levels during the balance of calendar 2007, though we continue to ramp significantly higher levels of production in our sites throughout China.
In May, we announced the addition of 55,000 square feet of capacity in Ho Chi Minh City, Vietnam -- new product introduction production activity commencing during the upcoming fourth fiscal quarter with full production plans commenced prior to the end of the calendar year. Our investments in the fourth fiscal quarter are expected to be related to these locations and existing plants as we continue to invest for increasing production levels in the first-half of fiscal 2008. Capital expenditures for the fourth quarter are estimated to be approximately $65 million; an estimate of capital expenditures for the year of $280 million.
It is always difficult to hear everything being said in real-time, so I value being able to see the written record afterwards. The good news is that seekingalpha.com also has links to prior conference call transcripts, for those that are interested.
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