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Jabil's Fiscal 2017 Third Quarter Results

Thu Jun 15 00:00:00 EDT 2017

Mark Mondello

Jabil CEO Mark Mondello

Jabil held an earnings call on June 14, covering the third quarter of its fiscal year 2017. The company reported net revenue of $4.5 billion for the quarter – with 63 percent generated from Jabil's Electronics Manufacturing Services (EMS) business and 37 percent from Jabil's Diversified Manufacturing Services (DMS) business.  

"I'm pleased with our third quarter results as both business segments performed quite well,” said CEO Mark Mondello. “Core operating margin came in at 2.5 percent as anticipated during this heavy investment period, representing a 50-basis point pick up over 3Q last year.”  

Current Updates 

  • On the heels of a very demanding third quarter, Green Point is doing a great job managing complicated program ramps and keeping them on track. 
  • In the Healthcare markets, the drive to develop solutions with embedded technologies, combined with cloud-based data analytics play directly to Jabil's strengths. 
  • Packaging is working side-by-side with leading consumer brands, creating innovative packaging solutions that address the disruptions taking place in the industry.  
  • The $11 billion EMS segment has scale, proven operational excellence and the required domain expertise to maximize opportunities and continue to drive growth. Jabil is undoubtedly more unique and relevant in service offerings as the world drifts away from “build-to-print” requests to “build-to-function” content. 

"Our shareholders remain at the forefront of our actions. We’re agile, decisive and the most cost-effective operator of our business,” said Mondello. “There is clear evidence that our diversified portfolio strategy has taken hold and our productive market-facing divisional structure is working really well.”