Standard&Poor's Ratings Services' 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 (OEMs). Jabil had about $1.8 billion in total debt outstanding, including operating leases, pension adjustments, and securitizations, at Aug. 31, 2009. Revenues expanded through the November 2008 quarter, but declined subsequently, along with the rest of the sector. Sales in the August 2009 quarter were $2.8 billion, 14% below year-ago levels, while EBITDA was $133 million, 4.7% of sales. Year-earlier margins were 5.3%.
