The statistic highlights Jabil Circuit’s Operating Income by Segment starting from Q1 FY 2016.
Jabil Inc. is a worldwide provider of electronic manufacturing solutions and services. They make electronic components and parts on a contract basis for computers, smartphones, printers, and other consumer electronics, as well as more complex, specialized products for the aerospace, automotive, and healthcare industries. Jabil has manufacturing plants in the U.S., Canada, Mexico, Europe, Asia, South Africa, and a few other countries.
The company’s business can be segregated into two distinct segments:
Electronic Manufacturing Services (EMS) – The EMS segment focuses on IT, supply chain designing, and engineering for all things electronic. The products that Jabil makes under this segment are used in the industrial energy, automotive, networking, communications, point of sale, and printing businesses. The EMS segment forms around 55% of Jabil’s total revenue.
Diversified Manufacturing Services (DMS) – The DMS segment focuses on manufacturing services for material sciences and technologies. It works with its customers to develop and manufacture products for consumer wearable technologies, healthcare, defense, aerospace, and packaging industries. The DMS segment forms the remaining 45% of Jabil inc’s total revenue.
Operating income for a firm is the profit that is realized after deducting operating expenses such as wages, depreciation, etc. from the gross income. The operating profit margin is the percentage of operating earnings to the total revenue of the firm.
The operating income and margin have been quite steady over the years except for one quarter in 2016 when the operating income from its DMS segment went into negative values. Jabil Circuit’s Operating has been dynamic quarter on quarter over the last few years, with values ranging from 0.24% in the third quarter of 2017 to 11.6% in the last quarter of 2019 for the DMS segment and from 2.35% to 6.1% for the EMS segment.
Jabil Circuit Has been far from steady over quarters. In the last quarter of 2018 operating income went up to $63.68 million from $28.50 million in the previous quarter. The operating income grew further in the first quarter of 2019 to $169.57 million, after which it dropped to $102.41 million in the second quarter and $54.90 million in the third quarter. In the fourth quarter operating income started increasing again and went up to $69.70 million and then $172.6 million in the first quarter of 2020.
The operating income in the last quarter of 2018 from the EMS segment increased to $148.59 million from $121.56 million in the previous quarter. The first quarter of 2019 saw a huge fall in operating income from the EMS segment to $84.10 million. After the first quarter drop revenue started growing and increased to $88.65 million in the second quarter, $130.87 million in the third quarter, and $176.43 million in the last quarter. This uptrend did not continue into the next year and the first quarter of 2020 saw operating income drop down to $104.70 million.
Despite the dynamic values of Jabil’s operating income it has only reported an operating loss in one quarter over the last 5 years and that too only from one of its segments.
The growing revenue and operating income can be considered to continue growing for the coming years.
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