UPDATE 2-Jabil Circuit gives weak forecast on demand worries
* Sees Q1 core earnings of $0.51-$0.62/shr vs est $0.67/shr
* Sees Q1 rev $4.3 bln-$4.5 bln vs est $4.52 bln
* Q4 core earnings $0.54/shr vs est $0.58/shr
* Q4 rev $4.34 bln vs est $4.22 bln
Sept 25 (Reuters) - Contract manufacturer Jabil Circuit Inc reported a quarterly profit below analysts' expectations and forecast weak first-quarter results as it continues to grapple with low demand in some of its business segments.
The company forecast a 24 percent dip in revenue from its high velocity segment (HVS) for the current quarter. The business, which brought in about a third of its revenue last year, provides module design, manufacturing and repair services for electronic appliances like printers, set-top boxes and circuit boards.
Jabil Circuit forecast core earnings of 51 cents to 62 cents per share for the current quarter, below the 67 cents analysts had estimated.
Its first-quarter revenue forecast of $4.3 billion to $4.5 billion also missed analysts' average estimate of $4.52 billion, according to Thomson Reuters I/B/E/S.
Jabil expects its biggest revenue segment - diversified manufacturing - to also underperform in the current quarter as governments cut back on spending in areas like clean technology.
It expects the segment, which accounted for 45 percent of its revenue in the fourth quarter, to grow 12 percent in the current quarter.
In the fourth quarter, it took a charge of $5.9 million over one of its distressed customers in the solar business, part of its diversified manufacturing segment.
"Particularly about the solar space, a lot of OEMs are really struggling on a global basis, be they European, Asian or North American domiciled. So it's a tough marketplace," Chief Executive Timothy Main said on a conference call.
The company expects to make strategic acquisitions in the diversified manufacturing segment, the CEO said.
For the fourth quarter, net income fell to $82.8 million, or 39 cents per share, from $114.3 million, or 52 cents per share, a year earlier.
It had core earnings of 54 cents per share in the quarter.
Revenue rose marginally to $4.34 billion from $4.28 billion a year earlier.
Analysts on average expected fourth-quarter earnings of 58 cents per share on revenue of $4.22 billion.
Operating expenses rose 5.5 percent to $173.3 million for the quarter.
Shares of the company fell 3 percent in after-market trading on Tuesday after closing at $20.97 on the New York Stock Exchange.
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