Jabil hits net revenues of $4.3 billion during Q3

U.S. GAAP operating income for the third quarter was USD 59.6 million and Core operating income was USD 87.2 million. “Our Electronics Manufacturing Services (EMS) business performed ahead of plan supported by near-perfect execution during the quarter,” said CEO Mark Mondello. “However as expected, our third quarter results also reflected a soft environment within our mobility business. These challenges will continue to negatively impact our Diversified Manufacturing Services (DMS) business for the balance of our fiscal year,” he added. Jabil’s EMS business remained stable throughout the quarter, in terms of both revenue and margins. Net revenue of USD 2.85 billion represented an annual increase of 4% and core margins were reported at 3.5 percent. During the an earnings call with investors and analysts, Mondello asserted that the current market supports Jabil’s USD 11 billion EMS business and explained that stable demand will act as a solid foundation in fiscal 2017 and beyond. He asserted that the EMS business should grow 3 to 4 percent year-over-year. Jabil’s DMS business faced much anticipated headwinds due to declining product demand in the third quarter. Although the Jabil Green Point business performed exceptionally, it’s predicted that large scale demand fluctuations will impact the company’s fourth quarter in a significant way. However, Mondello reported that new product ramps in the Green Point business are going largely as planned.