© Jabil Electronics Production | June 19, 2019
Jabil closes third quarter with double-digit revenue growth
“I’m extremely pleased with our third quarter performance, highlighted by solid operational excellence and strong financial results,” says CEO Mark Mondello pointing to the double-digit revenue growth.
The manufacturer recorded third quarter 2019 net revenues of EUR 6.1 billion, up from USD 5.4 billion during the same period last year. Third quarter US GAAP operating income amounted to USD 140.9 million, compared to USD 112.9 million during the third quarter in 2018. Core operating income ended up at USD 185.8 million, up from USD 150 million last year. Gross profit during the quarter amounted to 443.8 million compared to USD 398.2 million for the same period 2018. Looking at the company’s different revenue streams we see that Jabil’s Diversified Manufacturing Services (DMS), experienced a year-on-year revenue decrease of 6% – something that the company is expecting to rectify and turn into a 4% year-on-year growth in the coming forth quarter. Electronics Manufacturing Services (EMS) recorded a year-on-year revenue growth of 26% and Jabil expects the momentum to continue here aiming for 22 percent year-on-year during its forth quarter. “In the fourth quarter, our outlook for revenue, core EPS and cash flow is solid as we see robust demand in 5G / wireless, cloud, industrial, healthcare and packaging,” says Mondello in a press release.. “Over the longer-term, we remain relentless in our commitment to drive margin expansion and strong cash flows through a well-balanced, diverse stream of income.” During the third fiscal quarter, Jabil successfully transitioned additional sites from Johnson & Johnson Medical Devices Companies (JJMDC) as part of the previously announced strategic collaboration between the companies. “Our overall healthcare business achieved another important step during the third quarter with the acquisition of three new sites, located in Brandywine, Elmira and Monument,” says Mondello. “I’d like to welcome our new employees at these outstanding healthcare facilities, which further expand our talent and capabilities in this area of our business.”