Jabil CEO Tim Main Optimistic About FY 13 on CNBC’s Mad Money
As Tim Main continues the conversation around Jabil’s Diversified Manufacturing growth on CNBC’s Mad Money, host Jim Cramer points to how Jabil is different from its competitors. From incredible sector diversity to social responsibility, Jabil’s efforts position it as one of the world’s leading Electronic Manufacturer Services providers.
Business Diversity: Good for Customers & Investors
Jabil is not a traditional electronic manufacturing service provider. Jabil assembles products beyond simple consumer technology (like set top boxes and cell phones). Jabil manufactures clean energy, industrial and networking equipment, medical devices, and more. Jabil leverages its adjacencies to benefit its customers. As Jim Cramer stated, “Jabil is beloved by its customers because it helps them save a fortune on manufacturing costs.”
With Jabil’s stock currently trading at approximately seven times forward earnings, Jim Cramer points out that Jabil’s stock is an excellent value—industry stocks historically trade ten to fourteen times earnings.
Diversified Manufacturing to Lead Fiscal 13 Growth
Tim noted that Jabil’s Diversified Manufacturing Services business performed remarkably well –up over 22% in the last quarter. In fact, Tim expects a return to significant growth in Jabil’s Diversified Manufacturing Services in fiscal year 2013 and he expects Jabil’s high velocity and infrastructure business will stabilize, reducing distractions that have caused investors concern over the year.
When host Jim Cramer asked Tim if Jabil is awarded business because of its reputation as a humane employer, Tim’s response was clear:
“The flight to quality and people who invest in sustainability and invest in human capital will win the day longer term.”
Jim’s response was equally clear. “That’s why I think you win out in the end . . . Jabil will be pretty darn good.”