Jabil said it completed the sale of its Chengdu product manufacturing business, including its Wuxi component manufacturing, on December 29, 2023 for pre-tax cash proceeds of approximately $2.2 billion, and that it recorded a pre-tax gain of $944 million. The company said the purchase price is still subject to final post-closing adjustments.

10-QQuarterly reportFiled Jul 9, 2024Period of report May 31, 2024Summary published (UTC) Oct 24, 2026

Key points

AI summary

Jabil said it completed the sale of its Chengdu product manufacturing business, including its Wuxi component manufacturing, on December 29, 2023 for pre-tax cash proceeds of approximately $2.2 billion, and that it recorded a pre-tax gain of $944 million. The company said the purchase price is still subject to final post-closing adjustments.
Jabil said DMS segment net revenue fell 23% and EMS segment net revenue fell 18% for the 3 months ended May 31, 2024. The company attributed 18% of the DMS decline mainly to the divestiture of its mobility business.
Jabil said it expects to recognize approximately $300 million in pre-tax restructuring and related costs in fiscal 2024 in connection with its 2024 Restructuring Plan. It said net cash expenditures of approximately $200 million are expected to be paid over fiscal 2024 through 2025.
As of May 31, 2024, Jabil said it had approximately $2.5 billion in cash and cash equivalents and $4.0 billion of unused borrowing capacity under its revolving credit facilities. The company also said it expects fiscal 2024 net capital expenditures of 2.2% to 2.5% of net revenue.

Key figures

Quarter ended May 31, 2024

Revenue: $6.8B
Operating income: $261M
Net income: $129M
EPS: $1.06
Gross profit: $608M

From the XBRL financial data filed with the SEC · not processed by AI.

Summary

AI-written

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

Completion of Mobility Divestiture and Pre-Tax Gain

Jabil said it completed the sale of its Chengdu product manufacturing business, including its Wuxi component manufacturing, on December 29, 2023 for pre-tax cash proceeds of approximately $2.2 billion, and that it recorded a pre-tax gain of $944 million. The company said the purchase price is still subject to final post-closing adjustments.

Source · Based on the MD&A text of the filing

Components of Quarterly Segment Net Revenue Decline

Jabil said DMS segment net revenue fell 23% and EMS segment net revenue fell 18% for the 3 months ended May 31, 2024. The company attributed 18% of the DMS decline mainly to the divestiture of its mobility business.

Source · Based on the MD&A text of the filing

Expected Costs of the 2024 Restructuring Plan

Jabil said it expects to recognize approximately $300 million in pre-tax restructuring and related costs in fiscal 2024 in connection with its 2024 Restructuring Plan. It said net cash expenditures of approximately $200 million are expected to be paid over fiscal 2024 through 2025.

Source · Based on the MD&A text of the filing

Liquidity and Net Capital Expenditure Outlook

As of May 31, 2024, Jabil said it had approximately $2.5 billion in cash and cash equivalents and $4.0 billion of unused borrowing capacity under its revolving credit facilities. The company also said it expects fiscal 2024 net capital expenditures of 2.2% to 2.5% of net revenue.

Source · Based on the MD&A text of the filing

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.

View the original filing on SEC EDGAR ↗

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