Jabil Inc. (NYSE:JBL) Q3 2019 Earnings Conference Call - Final Transcript

Jun 18, 2019 • 04:30 pm ET


Jabil Inc. (NYSE:JBL) Q3 2019 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Jabil Third Quarter Fiscal Year 2019 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) Please note, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Adam Berry, Vice President, Investor Relations. Thank you, sir. You may begin.

Adam Berry

Good afternoon, and welcome to Jabil's Third Quarter of Fiscal 2019 Earnings Call. Joining me on today's call are Chief Executive Officer, Mark Mondello; and Chief Financial Officer, Mike Dastoor.

Please note that today's call is being webcast live, and during our prepared remarks, we will be referencing slides. To follow along with the discussion and view the slides, you will need to be logged in to our webcast on jabil.com. At the end of today's call, both the presentation and the replay of the call will be available on Jabil's Investor Relations website.

Please note that during today's conference call we will be making forward-looking statements, including among other things, those regarding our outlook for business and our expected fourth quarter and fiscal '19 net revenue and earnings. These statements are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially.

An extensive list of these risks and uncertainties are identified in our Annual Report on Form 10-K for the fiscal year ended August 31st, 2018 and other filings. Jabil disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

With that it's now my pleasure to turn the call over to CEO, Mark Mondello. Mark?

Mark T. Mondello

Thanks, Adam. Good afternoon. I appreciate everyone taking time to join our call today. As usual I'll begin by offering our people a warm thanks for their hard work and continued dedication. I'm proud of the fact that keeping our people safe is the top priority for all of us here at Jabil.

Before I get into our financial results, I'll offer a few thoughts around what we're seeing in terms of trade and tariffs. Today, very few customers are moving existing production out of China. I believe this decision made by those customers is based on three factors.

One, the deep-rooted mature supply chain that's foundational to China. Two, many of our customers don't see a reasonable payback associated with such a move. And three, a decent percentage of our China revenue is for final consumption in geographies other than United States.

With that said if the landscape shifts and customers change their mind Jabil is well position to author and implement safe and practical solutions, which best serve the needs of our customers. In fact, I believe JBL is positioned better than most especially when considering the commonality of our IT systems embedded throughout our seamless network of factories around the globe.

Now turning to slide four. Let's take a look at our