Tuesday, January 13, 2009

Undeclared Writedowns at Jabil Circuit?

Jabil Circuit Inc. (JBL-$6.56) recorded a $318 million impairment charge in its fiscal first quarter 2009 ended November 30. The electronics-components maker wrote-down goodwill in its consumer division—focused on products such as cell phones, telephones, PC peripherals, and set-top boxes—due to the deteriorating economy, tight credit markets and a drop in its stock price. Surprisingly, although its electronics manufacturing services (EMS) segment is more sensitive to the slowing economy, the company concluded that the fair value of the division continued to exceed its carrying value and no impairment was assessed…. Read More….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

No comments: