Jabil Inc. (NYSE:JBL) Q4 2023 Earnings Call Transcript

Joe Cardoso: Hey, thanks for the question, guys. This is Joe Cardoso on for Sameek Chatterjee. Just one question for me, but maybe a two-parter. Your outlook for Industrial and Semi-Cap encompasses more muted forecasts for your Semi-Cap business for ’24. Within that, can you just bifurcate between what you’re seeing in the front-end and back-end of the business and how you see those tracking through the year? And then, you talked about prepping or investing into that business for ’25. Can you just dive into that a bit and touch on if there’s any specific areas you’re investing in, or is that more of just a broader comment relative of being prepared for that end market as it recovers? Thank you.

Fred McCoy: Hi, this is Fred. I’ll try to take that question for you. So, right now, we’re seeing a lot of uncertainty in our fiscal ’24. I think the industry is looking at kind of the back half of calendar ’24 for a rebound. So that’s how we’ve modeled the Semi-Cap business for our FY ’24. I think that’s both front-end and back-end. We’re seeing those challenges. In terms of the investment, I mean, we’re well aware of the CHIPS Act and the other investment acts in Europe, and we are also well positioned in some of the regional trends that are going on, both on the manufacturing and the components that go into the semi-capital equipment. So, we’re really using this period to kind of optimize our footprint, optimize our capability and our capacity in the right regions to support what we see as where the bounce back will happen when it does late in 2024 or early 2025.

So, we feel really comfortable that — again, as Kenny alluded to on the prior question, our global footprint and our standard practices will allow us to be the key supplier to this market in all three regions of the world.

Joe Cardoso: Thank you. Appreciate the color.

Operator: Thank you. We’ve reached the end of our question-and-answer session. I’d like to turn the floor back over to management for any further closing comments.

Adam Berry: Thank you. Our call has now ended. If you have any further questions, please reach out. Thanks.

Operator: Thank you. That does conclude today’s teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.