The company's first-half profit rose only 0.5% from a year earlier, in part because of deeper losses from its contract handset-making unit.

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In addition, the short-cycle businesses concentrated in the unit are more vulnerable to near-term contract delays and terminations as the government grapples with ways of reducing budget deficits.

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In 1982 Jabil went into high-tech with a contract to make add-on boards for the IBM Personal Computer unit in Boca Raton, Fla.

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He headed the unit on a three-year contract that started in August 2005.

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