June 21 (Bloomberg) -- Jabil Circuit Inc., which makes phones for Nokia Oyj and electronics for Hewlett-Packard Co., reported a 90 percent drop in third-quarter net income after recording restructuring costs. The stock rose after profit topped analysts' estimates.

Profit in the quarter ended May 31 fell to $6.23 million, or 3 cents a share, from $64.2 million, or 30 cents, a year earlier, the St. Petersburg, Florida-based company said today. Excluding restructuring and other costs, profit was 23 cents a share, topping the 20-cent average of estimates compiled by Bloomberg.

Jabil decided last year to cut workers at plants in Western Europe and North America and shift production to China, India and Eastern Europe, budgeting as much as $250 million to revamp operations. Restructuring cut $25.3 million from profit.

The results suggest the company is moving beyond a period of ``crisis and adversity,'' Chief Executive Officer Timothy Main said on a conference call today. Sales climbed 16 percent to $3 billion as orders for medical equipment and computer accessories advanced.

Jabil shares rose $1.33, or 6.3 percent, to $22.53 in after- hours trading. They climbed 57 cents to $21.20 in New York Stock Exchange composite trading today.

Sales in the third quarter topped the average estimate of $2.95 billion in a Bloomberg survey. The company forecast that fourth-quarter profit, excluding costs for compensation and restructuring, would be 25 cents to 31 cents a share. The average estimate in a Bloomberg survey is for profit of 29 cents.

Forecasts

Jabil forecast sales of $3 billion for the fourth quarter, compared with the $2.97 billion average of analysts surveyed by Bloomberg. Estimated cash operating margins may increase to between 3 percent and 3.5 percent.

The company also recorded $19.4 million in expenses for stock-based compensation, more than double the amount in the year-earlier period.

Jabil had postponed full results for at least three quarters before this one after executives misdated options grants. That forced the company last month to revise earnings in previous periods by $54.3 million to account for additional costs.

To contact the reporter on this story: Matthew R. Miller in Atlanta at mmiller31@bloomberg.net

Last Updated: June 21, 2007 18:10 EDT