The rating on Jabil Circuit Inc. reflects the company's diversified end markets and higher profitability than the majority of its peers, offset by competitive industry conditions, leverage that remains high for the rating, and somewhat aggressive financial policies. St. Petersburg, Fla.-based Jabil is a leading provider of electronics manufacturing services to such leading OEMs as Koninklijke Philips Electronics N.V., Nokia Corp., and Hewlett-Packard Co. Jabil had about $1.8 billion in total debt outstanding, including operating leases, pension adjustments, and securitizations, at August 2007. Revenues for the year ended August 2007 were up 19% over the prior period, although for the quarter, revenue growth slowed substantially to about 6%. The slowdown primarily is due to 20% declines in consumer programs that
