JBL - Earnings call transcript Q2 2019

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Operator

Greetings, and welcome to the Jabil Second Quarter of Fiscal Year 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Investor President, Vice Berry, Relations. Adam Thank you, sir.

begin. may You

Adam Berry

quarter Good call. earnings second afternoon welcome to and fiscal XXXX Jabil’s

Joining today’s Please and during slides. Chief call me To Mark being our Financial Officer, on is replay with will Officer, call prepared end the are follow remarks, of Mike be Relations live, along Dastoor. presentation webcast webcast on our note be we today’s Executive that logged and Chief referencing discussion and into be the will view call website. both the At the slides, of the available you and Investor call, a will need to Jabil’s today’s Mondello; jabil.com. on

to An on materially. the information, XX-K to these update turn Mondello. list call a Jabil future filings. year are or and the intention those currently remind call, and our and obligation disclaims for that, Mark expected as revise the to forecasts, such uncertainties we now earnings. fiscal new XXXX and any pleasure my I'd forward-looking August making other actual net These anticipated current revenue as to events, assumptions including, outcomes be of business, are With Form result ended Before our XXXX that that involving and things, year statements, whether during expectations, statements, it’s based or XX, for Annual all risks and our we any like otherwise. on cause regarding and will extensive third statements identified in uncertainties over fiscal today’s could CEO, differ or quarter conference to of outlook forward-looking Report begin, other listeners among results risks

Mark Mondello

Thanks, Adam. afternoon. Good

begin for Thank work the our call a taking join never-ending top our of priority by is hard commitment thanks people at our you. their our Jabil, fact all. appreciate time to and I'm that I Also, proud safe today. everyone always, the here people extending to customers. As for warm to I'll keeping

Now turning to slide X.

core look of quarter, a million We earnings the resulting revenues quarter of above another on take operating core $X.XX $X.XX, income our at second billion, results. had of guidance. delivered $XXX our in $X.X share per excellent Let's team the as midpoint of

testament we strength by our retail our revenue XXX in DMS in quarter, was industrial the the terrific. margin experienced driven sectors. This and at our Core a segment. came EMS the During segment, with hold X.X%, half cloud, working. results were year-on-year, basis is point improvement operating despite our results that robust Within and weak year. strategy it's this, mobility another the for broad-based quarter and the posted demand pleased really I'm taking diversification the in first sector, our Overall, of

more prepared his will and As is remarks. our details Mike customary, forward our provide results guidance around during

Moving to slide X.

You'll of team. our find the priorities management

believe in market diversification higher reliability drives of of we first degree product our area which terms is The constructing results. financial and a

outlook financially. second to The where book business, at the of once most new business And we leadership a $X.X free receive our is areas billion outstanding ability These And confidence assure driving focus margins of to look this company favorable which attention cash is constant from deliver. we our scale, across their of and and execute businesses XXXX. degree delivered three strategy. fiscal financial to the with from as a performance maintains our in ramps high year and towards ensure has the commitment our successful third form platform flow team team

less or balanced business update this single With you'll on X, which love become slide and dependent each portfolio. product revenues our of our any year, you looks. how on I offers current chart product passing of pie Next the a better see far an family. blend

and important? is so our of earnings the increases our greater diversification why reliability simply Quite this cash So, flows.

on update new an X, our Turning awards. see business to slide you'll

Our both XG wireless are increase. healthcare XX% September, $XX and since million up a wins

in space XX% year and beginning the now the remain since our fiscal cloud automotive of Our XX% the on to up plan. are wins business wins

this I'd take before I'll with you your the X team and attention our starting like Johnson turn pleased around. & Johnson. progress made the with now Albuquerque. awards For we've subset business me, to in our slide, so slide good way to to speak all welcome through Torres is of new news where I'm to the But new I just members a targeted

and Johnson The Thanks this I'm has quarter Jabil Jabil and to first this part of involved & during The been as reality. two on Johnson the a was transitioned report completed happy strategic collaboration everyone our time. to sensational. X integration to factory and making teamwork completed that second sites Wave for between

team and everything year the to associated healthcare a will and protect remain annual will continue $X J&J XXXX. be Our Financially, fiscal do. we $XXX billion million confident support with in to of business in they brand revenues this range that

talk efficient I'd to to turn why model chain supply disaggregation. historical which participating with in as please To refer a cloud is about to proposition eliminate model, actively around like where I'd centered is helps X, an slide value the Now start space. Jabil Jabil's what

In the addition, overall this throughout invested model reduces entire network. greatly capital

often to allowing and engages product a product digital Second, engineering Jabil the an simplification has early enhancements and for specific technical chain that together put supply experienced in cloud, flexibility. and design for integration team, team

terms year. will provide business healthy I this In this asset-light revenue of model, believe cash of our be space, free service in And $X forward. flows with will strongly this for billion revenue going excess Jabil's

transition we slide, slide As to my X. final

the progress, and we've headed we're past tremendous where about made in think I years. few the

in operationally is and strategically, good and business shape, commercially. solid Our

was anticipated worth but XXXX, start the year, our plan weak during of noting half the it's as the In fiscal first semi-cap operated of terms to this equipment that the it at of we weakness business year. we

this for early term, in that we We're mid quite more that the year, June, market. With to based to planning this a serving to but in sector, sound recovery timeframe going believe bullish semi-cap longer now July in also remain would We in not said, begin our demand normalize on this largely normalized that's happen. on XXXX. positioning

weak mobility for As year. the our remains sector, of the for fiscal balance demand

So from all for what to XXXX. flow increase, and a the begs we only core but $X $XXX confidence million a upping XX% said not somewhere our $XXX from differently do taking neighborhood this deliver of also a are question, for in cash share, or actions XX% have we million fiscal earnings the free target improvement year, to the why

So, we're we care three, de-lever and action especially the wins, And our margin of initial we'll expansion further business. incremental new and associated the driven areas our cloud. our health buildup, growth. to efficiencies business bow around base specifically balance like continue see taking. with which our number from sheet, and Two, I of is we'll execution team was believe one, approach the decisions wave inventory closing, the by making In in the

the turn focus look And I to XXXX, will margins. Thank call the Mike. squarely fiscal beyond team our of be free and I'll generating you. As on leadership over now flow cash expanding

Mike Dastoor

performance. Thank Mark, with afternoon, pleased you, quarter good and everyone. extremely our I'm second

XX% operating income factors; quarter During per ramps; X% two an operating that diluted $XXX Core driven the a $X GAAP during another borrowing, million, X.X%. quarter working. above on results core and first, revenue intra-quarter shares. of timing strong scale increase the the our interest is was Net share was and of new of operating million, was year-over-year, consolidated the the second billion, business by was previous mainly expense $X.X continued and diversification point quarter quarter of our representing income increase of delivered executed both during earnings to levels and quarter our million was $XXX year-over-year. expectations margin ongoing Net an $X.XX. opportunistically exceptionally $XX repurchase strategy we proof our during providing for million yet well second, segments GAAP higher the

Core diluted rate tax core were per earnings $X.XX. was for quarter share the Our XX%.

two associated highlighted, & Mark our Devices Johnson collaboration Medical with integrated strategic with Johnson As Companies. facilities we

in million and the and of this expenses. collaboration related In working As form related and acquisition expenses. QX, related expense we integration of to reminder, a cash of the $XX incurred majority is outlay integration capital

points balance of strength the profitability prior Now, turning in of X.X%, mobility mobility demand. increase core mainly DMS The our revenue, demand year. levels basis we've diversification results. weaker to an X% due over than core This to performance This in XXX efforts. the improved margin our in progress quarter highlights $X.X due billion, Revenue impressive segment made down was were of segment businesses. mainly of lower to Despite lower in for expected was our margins second year-over-year. DMS our the was face the

increased billion. represented the company For our XX% Revenue EMS revenue. total by of segment for quarter, year-over-year to $X.X DMS XX%

From which cloud well perspective, an XXX the quarter, continued excellent job XG our new quarter. declined revenue indicated Mark continued to associated offset and year-over-year our for in did As industrial, an in robust costs semi-cap business the softness with growth. ramping to space the margins contributed all wins, to EMS our as semi-cap year-over-year retail, weakness and total new segment company in the basis awards. performed by X.X% teams XX% Core ramping expected. points of represented in end-market due

end for Next, improved year in weakness fiscal XXXX in by revenues lower by revenue DMS updated today's our in mobility, to market. strength I'd driven outline suggests partially by outlook healthcare. offset expectations like continued Within

edge devices reminder, a mechanics As across and mobility cuts and accessories.

a for margins XX be billion. X.X% point outlook, improvement quarter new on from the we this DMS ago basis revenue Given slightly on year, expect a to of $XX lower now

space, expect XG wireless the protracted semi-cap the offset EMS. in sales. slightly which revenue recovery enterprise Turning We now lower in is reflected to by in cloud, stronger and

slightly fiscal semi-cap for of for margin expect XX EMS has continued profitable our our to While on the year, points still weakness billion. revenues X.X% by year basis to we lowered the business $XX be expectations higher the

cash now balance our flows sheet. to Turning and

in During following by is inventory to sequentially factors. days. due increase the our mainly quarter, days This five increased

at first earlier, & Johnson we Devices the of First, mentioned end as February. Medical integrated facilities two the Johnson

with of revenue. a inventory limited result As we recorded this,

anticipated Second, half we of the the year. levels components support the days. of end factors inventory in tightness with in ongoing had the negatively impacted to higher quarter the ramps the inventory at the market coupled These second of

were As and totaled to move through the net flows expect capital levels QX moderate of in expenditures operations Cash levels. our we by we million million. $XXX inventory year, provided $XXX QX balance from the

on return cash X.X debt total XX.X%. and to Core $XXX We $XX million. EBITDA invested a balances the exited was quarter of capital times flow of result, free million. with levels the was As core cash QX for quarter approximately for

we return capital in have XX billion. $XXX shares and X repurchased $XX.XX. per share price average repurchases an These million approximately approximately at utilize $X.X to repurchase In authorization. shares dividends our of including fully shareholders QX, million capital we repurchases million our our Since bringing to to of XXXX, now the returns June Turning our total of repurchased inception framework. return framework

a return Moving forward, to and inclusive framework investments. we remain of committed shareholder capital balanced return

guidance. while our to now Turning expected year-over-year expected to third to to on segment revenue $X basis billion. $X to quarter the XX% EMS revenue a is billion on increase is basis decrease year-over-year DMS a XX% segment

in quarter tax $X.XX margin be be per We X.X%. share of to the third of $X.X to in $X.XX. earnings in is to of of of diluted expect fiscal in million total on an the revenue with to Core at the GAAP be billion $X.XX. range the is be XX% income per in share be XX%. $XXX of to expected estimated of in range earnings range diluted to to to to range to is of for range. range quarter X.X% increase of core the company The the XX% core to estimated earnings the $X.XX in XXXX the the Core range rate the third operating $XXX $X.X operating million midpoint is billion in estimated

As deliver on $X inventory million days the EPS our ability ability of $XX we asset-light year. and the and in higher approaching FY enter with in disciplined for in $XXX free coupled cloud confidence in The the manage second along me revenue confident in XXXX, capital working adjusted generate flows cash I'm with strong business half efficiently anticipated to improvements flows. of gives capital our expenditures core million our to nature cash

I'll we to value the longer unfolds. committed to to term, further remain shareholder turn begin cash as over now the diversification flow, and Adam strong Q&A. back earnings Over through margins, delivering call growth free our strategy

Adam Berry

Mike. Thanks,

cooperation. will remind participants We I'd customer the Operator, or like agreements, begin that your product our session, for we we per any specific now call ready customer As to Q&A. our not address questions. we're appreciate Q&A

Operator

your with question. Ladies and Cross line comes Please gentlemen, with Research. session. a Thank Fox will [Operator time, at proceed be this you. Our Instructions] first question-and-answer we Steve from of conducting the question

Steve Fox

Thanks. Two please. afternoon. Good questions,

First, looking of at day. end I at markets your consumer-facing are comments the on mean those two retail the mobility. basically

worse. is to getting different be outlooks. one seems is -- have getting better and One You

So outlook maybe et the versus bit of then, maybe can I versus terms be, was doing, terms by for of terms maybe what as would cetera. little of follow-up, issues, versus other a of cash it's helpful. is conclusion is upgraded in macro chain flows, wondering, color give that'd a be mainly guess, J&J, can if you But things us supply inventories, maybe is I my color Mike. provide in much in you're Jabil-controlled some you And what how Thanks. driven

Mike Dastoor

Steve. Hey,

answer I'll question first. second of flows we for couple your feel Cash about, a reasons. So good

the is of actually one first The nature business. cloud asset-light our

capital working light cloud And our free cash what it. on you It's business gone second improvements is in mentioned, As looking up got flows piece good light it's has attached And the real some on pointed extremely good. Mark again. days. expenditure. extremely It's really inventory is It capital. to out,

Steve Fox

Okay. sorry, off that asset-light And thought the prospects better coming is on and the flow also? that you nature growth Mark, of then, are better chime before, I'm in, the just so you basically that previously reflects business, the so than cash cloud of

Mike Dastoor

That's correct. Yeah.

Mark Mondello

Yeah.

I think Mark. Steve. Hey, true, that's this is

– don't connection I on connecting retail the mobility. don't So you I Steve, guess, drive I to same do,

don't much mobility but retail both on tends see broad side. retail to more would call different than us be than infrastructure I can you them I consumer, and look very how much think retail. I they're businesses. can mobility as for I more much narrow-focused at more -- I

Steve Fox

Okay.

retail So any is besides growth specifically terms around driving said? color the just you in of then there what's what

Mark Mondello

Not yet.

Steve Fox

Okay.

Mark Mondello

broad-based say I'd just it's retail type infrastructure business. of

Steve Fox

Okay. you. Thank

Mark Mondello

Yeah.

Operator

you. Thank

the of America. from with with is Bank question Bhattacharya of line proceed your next Ruplu Our Please question.

Ruplu Bhattacharya

for – have the give thoughts questions. you us you was a Nypro Thank mobility the I business business your doing is ramp in May if Typically, my you DMS wondering margins your for Hi. taking quarter. on well. can the but

guidance, any helpful. any be color there would So

Mark Mondello

Yeah, Ruplu.

of that year would at I Xx of look that this non-mobility This bit suggest think dollars better. I and quarter X% it year, that. would year-on-year. I'd of And well area. going third we're up of some XXXX look in investment. margins be margins expect I maybe year a so So terms to way over second in last QX, health May still packaging and area half back I'd to as that the second in DMS, an overall be maybe care DMS, is think I if profit it better a was better point year. would Last as quarter, kind be the But to would with or maybe be percentage DMS, around for what somewhere little the at for to a be of of seeing half then, think half year collectively, I absolute X%, XXXX think

Ruplu Bhattacharya

should just or Can of you us free second helpful. on in guidance very you estimate XXXX, Or And increasing you. it cash actually question there? be to forward, reasonable in subsequent anticipate CapEx be having what give to would going is we significant your subsequent fiscal My cash expect investment flow That's is Okay. XXXX – Thank any years? flow. made any in the do years? expect

Mark Mondello

of body couple that's into get to going not for next a work years because of process. in CapEx the I'm that's

million. it's in the XXXX free of in around between. to cash to said be neighborhood to think in million. This flow year, in September about think the think FY $XXX I be be somewhere going going I it's fiscal And call, we I XXXX something $XXX for

Ruplu Bhattacharya

question mean, the Nypro that is does Okay. on helpful. much. And acquisition? that's J&J you so my with seasonality change Great. last Thank I

Mark Mondello

I model the but kind much slightly, of same. Maybe that would

Ruplu Bhattacharya

much. Okay. Thank you the you. so Really all appreciate Thank color.

Mark Mondello

Yeah.

Operator

you. Thank

James. question is Please Adam your next Raymond with of the question. from line Our Tindle proceed with

Adam Tindle

the I it ramping, I for maintaining FY the in impressive pretty just Thanks. see be have speak declines in like comments margins percentage start job miss I was heard and during declines that big this quarter hoping and thought year-over-year some Good an run big got decline know, decline DMS in And the on I XXXX, work versus revenue over but afternoon. just how on if cadence the acknowledging snapback greater the underutilization? revenue But that. the are QX start long a seems we you've intact can Would wanted maybe with expectations maybe the quite also persisting? of you of J&J kept terms DMS. think pretty some your to $X and how mean, you by you'd this. then, rate battling margins But through do in QX. of billion maybe I during revenue the time. in to

Mark Mondello

Thanks for There the question, a pieces lot to that. of Adam. was

up to that and Let simplistic way maybe look a shake to me this try is it. at

if kind the for which think, you think take mobility be I big and plan. guide our at take and one is to flat I year, is there, I And to relatively think, or of year-on-year is DMS else at going the a got look whole look weak above XXXX third is everything at quarter and you've put XXXX. you

DMS about business, feel exit I of XXXX. really good especially as composition So the overall our we

we terms basis DMS. DMS of the again did How in It's end the points quarter. last In in year? saw XXX decline the diversification second and up we – greater some delivering composition of really than margins

into really much As the it's the end I next with business diversification. a different going year of at and XXXX, quarter, good that look just today, tomorrow, business

Adam Tindle

But noticeably, adding revenues margins still on would Maybe of I down shifting you've you've those healthily. first quite in that pretty incurring back costs growing gears be year. helpful. then been that's there think know one I had Okay, the EMS. half the

the think operating fast higher just you than of terms in we're walk Maybe be first to we're where the that's what go? to parts said core. and You going think when it's through EMS I observing the supposed margin cloud's moving margin half ramping missing to

Mark Mondello

saying are right? you EMS? You Are

Adam Tindle

Yes EMS.

Mark Mondello

Yeah, in little the really September I you a was little been call, the because bit. a bit We've December lost me EMS I think consistent with then confused call.

talking $X I about the year holds. half first we It's margins for of calls. think around in X.X%, book positioning we've XXXX. the well couple related That and of to to X.X%. costs the around ramping it EMS about year And last talked fiscal op that be the still billion of for just largely been business

would let's covered largely say with XXXX see about recovery thought early $X.X being was billion. prepared you're that's So the we business our to thing recovery our but the beginning only cloud in largely in if it. than that the $X.X that's since none with the of The the beginning starting changed changed. XXXX. June, today bit at, business this slide, I growing business, look flows billion. expected September I enterprise of and exactly $X.X just attached in faster And kind where in we EMS is around my now remember free that due business snap a And year that of semi-cap We at we're year. business our the won't to bit then lack remarks. billion, cash equipment. somewhere nice a back the don't timeframe really better blue for see we word And to enterprise green of until That's July is

will sustained back first fourth over with margins this over those So be of EMS on would right QX, up for half a And the look you X%. bit we're the at margins X%. looking look in being then math again as And back that what you at be quarter impacts weakness semi-cap, top thought up margins guide still they at even we year our be. of but as should overall,

really, So that really I good business feel about overall.

Adam Tindle

Got it. Thank you.

Mark Mondello

Yeah.

Operator

you. Thank

question. is from the your question Citi. Suva with of next Jim Our line proceed Please with

Jim Suva

Is side. very us DMS, play? & relative biggest? so in ramp into guidance us more of material level Or biggest has than on and but that the had the was cloud EMS question than they was businesses that can than I you A far. again. side expected, there the your expected, The and here's a these come details been quite EMS consumer about more where Thanks upside the earlier help the much to expected, segment, Johnson just Johnson maybe for focus impressive second -- lot set especially come better did it the the understand the upside facilities other and you. better in big. Thank about Do third of biggest, or was so or help on

Mark Mondello

Okay.

assume things. us. with of our is -- composition about talking of the which EMS business. upside business business blend in and for healthcare a QX good & of a about a to our lot. range There side the was the a $XXX Jim. nice upside a couple is on there in that million & subset was of I was was quarter, So nothing a talked EMS Johnson. retail do you're really was of I of The earlier. had that really which blend in It The like about Johnson Johnson DMS cloud for The we business a Johnson of component

was question Steve asking then think And that. our industrial sector. around I a

the So, the the drove are areas three upside. those for that quarter

Jim Suva

then a follow-up. Got quick you. And

remember those are a little cadence tempo they faster? kind you that bit wanted? roof me more it the the correctly sounds just transitioning you a XX, your got little just you've under accelerating two Johnson maybe help side, bit the longer? get like update & trying because according there's to ballpark to them of they On Just taking I And Are Johnson than Are your or now. two sites? if XX, of can if

Mark Mondello

continue teams sites and two deal. And there'll about of sites on we to And -- it complicated, perfectly. than more and so that is but excited operating around far be is then good first us expectation There's terms transitioning over plan. so further the are it wave executing was in sites. correct. our You're be completed We're two the to -- very

Jim Suva

appreciated. details and greatly the additional clarification. for much so That's you Thank

Operator

Matt next the Thank of Please your Stifel. you. question Sheerin with question. with from proceed line is The

Matt Sheerin

is questions some ramping base which with two Could looks the lumpiness margin good pressure. number customers few or led Because really we've the in A afternoon. your Good exposure other diversified about and heavy thanks. regarding business talk has a cloud business which has some just obviously how nicely like you Yes, seen customer been one, runway there? competitors one to and opportunity.

could you an CapEx? And to you So, -- win talk then about how take opportunities order business are as and from that? scale to in on new positioned you position infrastructure continue scale adding without incrementally

Mark Mondello

Yes.

So, business. don't again, that I'll not pretty it into we're get say We again, composition. to I'm about going with excited the sectors. customer do typically any

cash In perspective cost terms very, on variable model scalable have and of model we a do asset-light is works the well a basis. scale, capacity, again our again very from and because the whatnot flow extremely

deviate know, but So, we business. continue that you our if let intent from that's to we as we'll model the drive

Matt Sheerin

integration. of very were I could that inventory are there a is sort is things that confined asset-light it turns that volatile other zone on quickly assembly And mean lot customer and you model? be whether memory or because not Does just that that you know it But involved? of elaborate inventory

Mark Mondello

going not I'm into get to that.

Matt Sheerin

Okay.

growth do of you over accelerated we see early into global ramps? enough. fair in on get see sort and you you've that as ramp then XG seen that quarters competitors the next like that Okay few could the And you're there, the stages more

Mark Mondello

Yeah.

think about infrastructure. of headed again, XG we but which, our in and positioned up I mistaken, new I business terms XG showed we're where I million, $XX on a wireless I took could is -- good we be of wins illustration think think we

a quite time. think, in really I going And that's think to there. really, for around position we're nice some business that's be we

Matt Sheerin

Okay. much. very Thanks

Mark Mondello

Yeah. Thank you.

Operator

next line question the Krieger Wolfe Ryan your Thank proceed Research. [Operator of question. from with Instructions] Please with Our you. is

Ryan Krieger

is Milunovich. This you you. question. Thank Ryan Appreciate, for my Steve taking

I also. EMS, that follow-up revenue wanted go to a better have I the in quicker strength some due to demand then, versus And quickly was for How much ramping so, to expected? just back And than clarification. the just of

Mark Mondello

standard revenue it coming XX% of the I would in bit say new would was I a of business-as-usual. little wins XX% on was what call faster kind and

Ryan Krieger

Okay, great.

business? So are And diversification, also, little ways discussed much to too to been is in you your diversification talk a you you could roadmap? pressure narrative. on a then Can which the diversification start you has a still about a put there obviously briefly feel Do where go? you have point key where bit actually

Mark Mondello

services, large I to negative, institutional let supply they look Yeah. where three a term I and a stick bit knitting manufacturing that it's engineering especially, so There's at, chain from a we're word investors Everything and is, very it ago. four management. compared the where do be times markets and think, different or viewed your use at – years love invest. it's talk me where manufacturing, to diversification of look, technology think just I companies about especially, and broad. just say, as differently. to important decide in We diversification can might want we I is I around lot why the

technology, management, in So into product that really the diverse terms our just it that supply better are businesses in cetera. portfolio flow synergies with there's look and much drives together we better tied family are great The beautifully engineering, bucket, terms on reliability more everything of product, and that et all markets, at diversification earnings. chain of the end company We cash across of fits and have. we

I journey. we know sit. a it's don't where So

family more no I where that's this like product cash $XX X% product billion, multiple billion, our $XX flows Ideally, what to billion think, or billion, or earnings times. is and I've to be than do. said of $XX I'd company, $XX a striving it we're

Ryan Krieger

Great. it. Appreciate

Mark Mondello

Yeah. Thank you.

Operator

you. Thank

Coster of line with question. the from proceed JPMorgan. is with question next Paul Please Our your

Paul Chung

Thanks Coster. Paul for on This my Chung is Hi. Thanks. for taking question.

and constraints? half expand like, just inventory you year kind can somewhat. on some of they're second from turns in expect benefit this normalizing accelerate first, the Do the you maybe Looks of cap see inventories? to working component So, state

Mark Mondello

I'll that order. in reverse take Maybe,

So, I of think, over terms that we've the And normalize in market inventory pockets six, we'll days ease. component see of next itself, months. the our seen nine balance in sheet terms of of

market components start back and half to the see we'll think calendar in early XXXX. of XXXX I the normalize

Paul Chung

taking thanks. wait-and-see your move you on update And accommodate then noise? Or tariff actions operations? really any moves? to soon, something Are customers does Okay, And can move still if mode? come in to everyone is quickly

Mark Mondello

down, that up would and activity say the last has in been I flowed. the ebbed and year

a we've of plans. think significant helpful our game to amount customers terms very been of in I

taking And well-positioned on I a it some been very are act this want in people to December call, to If I see. proactive we said accommodate and have the and are some think them. wait

for a lot six see we're wait global are well-positioned to way So, the keep next weeks. to like the kind us and right. IT I It to really think of our assist cetera, But need our customers overall be. again systems in a if moving decisions footprint et of with it's the seems eight

Paul Chung

Okay. And question. my last then

lots value-added at you So were your showcasing analytics supply CES chain, of features.

So service? this monetize maybe you. to six we to over see some service expect Thank have the And margin XX you started months? taking can next from contribution steps the to

Mark Mondello

don't into much Yeah. that. want Paul, on get to I too

our and and be to across we a revenues I a know don't -- our that monetize want -- business tool is and helps what to nice helps us it. XX, XX really really, certainly what's take efficiently going run think think higher really customers I we that

it, to want be and And certainly efficient going think good to care is have. of we're that talk customers, tool think about think it. additions we business where we we kind job think own and If run as efficiently business like tool have that's most real us the we our a our monetizing a ever be taking like really, our and we increasing I running foremost, as I of to our really I possible. margins But about We first we'll it. sure focus that the to one. very making really allows is importantly

Paul Chung

Thank much. you very

Mark Mondello

Yeah.

You're welcome.

Operator

appears for further time, It back concluding at you. so floor Thank we comments. have no the Mr. to to over like any or turn questions additional I'd this Berry

Adam Berry

Thank for Jabil. event. us concludes you now you for in Thank today. joining our interest This your

Operator

this and lines and we Once your may participation, again, thank this time. your for ladies Again gentlemen teleconference. conclude you today's at you disconnect does

Jabil (JBL) 14 Mar 192019 Q2 Earnings call transcript