Monthly Archives: March 2012

Jabil Supports Juvenile Diabetes Research Foundation Fundraiser

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Over 1,500 people turned out for the 5K walk at Ft. Desoto in St. Petersburg on Saturday, March 17, 2012 (St. Patrick’s Day) to raise money for the Juvenile Diabetes Research Foundation (JDRF). This year, a new, unexpected $5 parking fee presented a challenge to the fundraising event. Organizers were concerned that the new fee would turn some volunteers away from the walk and affect how much others could afford to donate.

Sheri Diller, Jabil Supply Chain Development Manager in St. Petersburg, Fl. and the Jabil walkers volunteer organizer for the JDRF event, alerted Jabil to the parking fee. Jabil quickly stepped in to sponsor a $5 parking pass for each volunteer at the event. In addition to the generous parking sponsorship, Sherri held several fundraising events at Jabil during the week of the walk. Between the fundraisers and the walk, Jabil employees raised over $1,500 for JRDF. For Jabil employee, Denise Riordan, Commodity Manager for Distribution in St. Petersburg, joining the JRDF Jabil walkers was personal. Having children in her extended family with Type I Diabetes, Denise understands what it is like for a family dealing with Juvenile Diabetes.

“I can’t imagine as a parent waking up in the middle of the night to make sure my child isn’t in a diabetic coma.”

About JDRF

According to the JDRF website, JDRF directed nearly $116 million to fund research, bringing total funding to more than $1.6 billion since inception in 1970.

Carolyn Boos, Executive Director of the JDRF’s Tampa Chapter, notes that the JDRF Tampa Chapter contributes $3.5 million in research funds to the University of South Florida and $1 million to the JABE Foundation.

Jabil CEO Tim Main Featured on CNBC’s Mad Money

Tim Main, CEO of Jabil, on CNBC's Mad Money

As a follow-up to an earlier appearance on CNBC’s Mad Money, Tim Main answered questions about why Jabil has been able to sustain growth even during a down economy.  Jabil’s stock is up 82 percent since July 2010.  Jabil stock is up 37 percent since Tim was last on Mad Money in late September 2011.

One of the keys to Jabil’s success is its business diversification. Jabil’s Diversified Manufacturing sector grew by 33 percent, making up 44 percent of the business and expanding rapidly so that it will soon make up to 50 percent of the business.

Tim explains that although the global economy is sluggish, Jabil continues to grow by helping customers navigate new global markets and supply chains and by diversifying its business. Jabil protects its customers and itself through diversification.

“We help them tap into emerging growth markets. We help them develop products for those markets. We help them localize supply chains for those markets. And we help make their companies more efficient in the way they deliver those products to market, even in the developed areas of the world. So we specialize in global supply chain architecture and management. We simplify the complexity of doing business in a global marketplace. That’s where the world has gone. That’s where we are. And that’s why we can grow.” – Jabil CEO, Tim Main

Because Jabil has diversified its business strategically, it has been able to grow steadily in a down economy. In his interview on Mad Money, Tim articulated exactly how Jabil’s diversification strategy works.

“. . .we can protect ourselves and protect our investors with diversification — health care, industrial, our materials technology group, different ways to access growth around the world, different services we can offer so that if there are volatility with any particular customer or segment, then we can protect our company and our investor base from that.”

Tim’s interview on Mad Money shows how Jabil’s strategic business decisions protect investors and customers from economic and industry upheaval.

Jabil Has a Strong Second Quarter Thanks to Long-Term Solutions Investments

On Monday, March 20, 2012, Jabil announced its second quarter 2012 earnings. Tim Main, Jabil President and CEO, was pleased with Jabil’s increasing revenue, up eight percent from its second fiscal quarter of 2011.

“We are continuing to see the benefits of investing in long-term solutions to drive growth in our Diversified Manufacturing Services business”–Timothy L. Main, President and CEO of Jabil.

Revenue from Diversified Manufacturing Services increased 33 percent year over year, climbing to 44 percent of total revenue in the second fiscal quarter of 2012.

Jabil continues to invest in long-term solutions and predicts continued growth over the next several years, especially in the healthcare and life sciences sector.

. . .”we have well over 20 design wins in this healthcare business area and we are very happy that when those products go into manufacturing, they tend to have — typically have a 10-year average product lifecycle. This leads to very sustained growth and gives us a great feel of confidence that our fiscal year ’13 and ’14 revenue growth should be at the top end of our 20% to 30% revenue guidance for the diversified manufacturing services area.” – Tim Main

Jabil expects revenue to rise 2 percent to between $4.2 billion and $4.4 billion in the current quarter, with adjusted earnings per share of 60 cents to 70 cents.  Jabil’s long-term solutions investments continue to support the company’s growth.

Jabil Waste Reduction Initiatives Save Money, Space and the Environment

In 2008, Jabil strengthened its commitment to the environment by implementing a global environmental management system. Today it is one of the largest certified systems of its kind in the electronics manufacturing industry, enabling a long-term carbon emissions and energy effort. In its first two years, Jabil achieved a more than 10 percent global reduction based on intensity factor.

Jabil’s plant employees around the globe have embraced the Do Your 2 program and invented new ways to conserve in both major systems and everyday operations, helping Jabil to reduce costs and emissions. For example, in Jabil’s Memphis Aftermarket Services Plant, the Fill it up with air project replaces bulky Styrofoam with inflatable air cushions as set-top box shipping packaging. The Fill it up with Air project, now implemented in other Jabil locations around the globe, significantly reduces shipping costs for customers, takes up less room on the plant floor and reduces impact on the environment.

A Jabil team in St. Petersburg implemented a solid waste reduction program to reduce bulky packing foam used to protect shipments of products and components. By making the foam smaller, it is easier to handle, store, and recycle. The successful project, implemented at other sites around the globe, reduced solid waste volume by 77% at the St. Petersburg location.

Jabil’s strategy for minimizing the impact of its operations and preserving natural resources is focused on reducing waste, energy consumption and our carbon emissions.   Jabil’s waste reduction initiatives are good for the environment, community and business.

Jabil’s Long-Term Growth and Financial Success Guided by Seasoned Executive Team

As the third largest electronics manufacturer in the world, with over 23 million manufacturing square feet and around 121,000 employees globally, Jabil is celebrating its 46th year in business. Jabil customers are among the largest and most recognized brands on the planet.

Guiding this growth is a seasoned team of executives with long tenure at Jabil. For example, Jabil’s chairman, Bill Morean, joined the company in 1977 and Jabil’s CEO, Tim Main, has been with the company for 24 years and at the helm since 2000. Chief Financial Officer, Forbes Alexander has been with Jabil since 1993. Company executives are strategically guiding Jabil’s entrepreneurial culture, customer satisfaction, and operational efficiencies as it diversifies and scales its operations globally.

Jabil’s unique culture is defined by rigorous competition and continuous improvement. With more than 14,000 active Kaizen events, employees hone their skills in quick decision-making exercises while improving processes in a very short period. Additionally, 3,000 Jabil employees engage in Lean six sigma training to improve processes and eliminate waste.

Mark Mondello, Jabil Chief Operating Officer since 2002, and a Jabil employee since 1991, notes just how serious Jabil executives are about continuous improvement at Jabil:

“Nobody’s going to run a factory inside of Jabil unless they are a Lean six sigma black belt.”

Jabil also has an impressive long-term record of financial success. According to Tim Main, Jabil CEO, the company has been paying dividends since 2006, has the highest bond rating in the industry, and outperformed the Standard and Poor’s for the past three years. Tim also noted that in the last ten years, Jabil had GAAP earnings, nine out of ten years.

Additionally, most of Jabil’s competitors, even the larger competitors, rarely earn GAAP earnings. Jabil is one of the only large companies in the industry that actually has accumulated retained earnings. According to JobStreet.com, Jabil is

“One of only 15 Fortune 500 companies growing revenue, operating income and earnings per share at a compound annual growth rate of over 25 percent over the past 10 years.”

With a seasoned team of long-tenured executives guiding and nurturing Jabil’s culture and business for the long-term, Jabil seeks to continually increase value for investors, customers, partners and employees.

Jabil’s Supply Chain Strategy Protects Customers

From the beginning, Jabil has been strategic in structuring its supply chain to mitigate risk. According to Jabil’s Erich Hoch, Senior Vice President and Chief Supply Chain Officer, Jabil remains cost-competitive within the market while providing customers with an added benefit—reduced risk. Jabil maintains a sophisticated, comprehensive supplier database that allows it to quickly evaluate supply chain issues and make adjustments. Combining a large global footprint and diversified manufacturing operations, Jabil’s comprehensive knowledge and understanding of the global supply chain is a strategic advantage for customers. As a result, recent natural disasters and economic downturns have had little or no impact on Jabil’s operations.

Because Jabil only partners with stable and financially sound suppliers, major and minor, Jabil insulates its customers from supply chain disruptions. For example, during the economic recession, many suppliers closed with little or no notice, leaving many manufacturers struggling to meet production requirements. In contrast, not a single Jabil supplier had a service disruption during this period. Similarly, Jabil’s customers were unaffected by global supply chain disruptions following the devastating earthquake that struck Japan in 2011.

Jabil’s strategic supply chain operations insulates customers from supply chain disruptions. Because of Jabil’s robust supply chain tracking system and its strict financial requirements for its suppliers, customers are protected from supply chain disruptions. In fact, Jabil’s customers gain distinct advantages over their competitors during global crises.