The rating on St. Petersburg, Fla.-based Jabil Circuit Inc. reflects the company's diversified end markets and higher profitability than the most of its peers, offset by competitive industry conditions, high leverage for the rating, and somewhat aggressive financial policies. Jabil is a leading provider of manufacturing services to leading electronics original equipment manufacturers. Jabil had about $1.4 billion in total debt outstanding, including operating leases, pension adjustments, and securitizations, at August 2008. Revenues for the fiscal year ended August 2008 were up 4% over 2007. Standard&Poor's Ratings Services expects revenues for the quarter ended November 2008 to rise slightly, despite challenging macroeconomic conditions. Severe competitive pricing pressure prompted Jabil to disengage from certain consumer-based programs to maintain margins.
