JBL
#Sure, <UNK>.
So, I can't sit here today and prognosticate two or three years out on whether or not we're going to grow our mobility business faster than the market.
We certainly have historically.
If you look our Greenpoint business as a proxy, again, I don't remember the exact numbers, but I think we have grown that business probably $2.5 billion in recent years on a relatively modest base.
And so, I feel really good about that.
Will we be able to continue those growth rates two or three years out.
I don't know.
Here is what I will commit to you: If we have the opportunity to grow that business at a good ROIC with good terms with customers, we are going to do so.
If we see the growth rate or the opportunities attenuate, then we will pull back CapEx.
We will be very, very prudent on the investments we make, and that business will throw off a significant amount of free cash flow, because handsets are not going away, and we have got great installed capacity in combination with incredible capabilities with mechanics and material sciences.
So to me, it is going to be one of two paths, and I think both paths are good paths.
Today, I like the path we are on, and one of the things I love about our Company is it is incredibly adaptable and incredibly agile, and we will read and react to the mobility market and do what is right for investors.
Yes, that's more of a read for this year.
The Greenpoint DMS teams have done a terrific job in terms of efficiencies through process and suchlike.
So do not take that as a signal for reads on 2017.
As <UNK> said, we're certainly looking at growth opportunities as we move in the new fiscal year.
<UNK>, I would also add to that ---+ I would read into that the fact that I think we have outstanding terms and conditions, and so I think we're being very, very diligent around how we run the business and how we run CapEx.
It might have an impact on it, but it is not material.
It's different, it's different products, different points in the market.
It could have a bit of an impact, but not overly material.
I think you should think about all of that.
And I do not mean to be reckless with that comment at all, but when I think about diversification, <UNK>, I think about diversification in Greenpoint.
I think about diversification across all of the different end-markets in our EMS business, which is probably 9 to 11 different end-markets, something like that.
And then end-markets aside, <UNK>, I think about our value proposition in the service offering.
So building product in legacy EMS-style is not going to drive a lot of value for our shareholders.
So we are still very good at that.
We're still going to do that, and it's a big part of our business.
But what we have been up to for the last couple of years is also looking at different parts of the value chain that we can play that we have a parenting advantage, and our solid service offerings that might be above and beyond what you consider typical manufacturing.
So I cut the diversification play many different ways.
One of the things I talked to <UNK> about in the last month is it has been a while since we had done an analyst get-together.
And I feel a little bit remiss on that.
Time flies by.
So I think you can expect something from us, certainly in the next 12 months, where we would love to gather everybody on the sell side, the buy side, and the banking side, to get together and give you much more color in what we are up to, because I think you will be really pleased.
I think we're seeing it.
I think we are seeing it with great acuity, and again as you sit back and model out just the rest of this year, I think you'll get to a conclusion that the diversification play, both EMS and then the non-mobility DMS must be diverse, because I think the financials will speak for themselves.
And then I also, as I've said the last three or four calls, I am pretty pleased with the diversification we have in the mobility space, as well.
Sure.
Why don't we hold off on that, and why don't we wait until we do a show-and-tell at an analyst meeting, and I think you will get really good appreciation of what we're doing in the healthcare space.
But I can tell you that it's grown to be fairly sizable, good critical mass.
In 2017, 2018, and 2019, it's going to be material to the Company.
<UNK>, it's <UNK>.
Unfortunately, because of the terms and whatnot with the acquisition and some sensitivity around it, we just can't provide a lot of detail.
I will tell you that that acquisition will be fully accretive by Q1 of 2017.
Yes, that's a good question.
It's very modest at the moment.
We did that acquisition more from a capability perspective, as well as a strategic play along the lines of our diversification.
And we just can't say much about it, unfortunately.
But it will start to have contributions as we get into the early parts of 2017.
Sure.
Are you talking about at a corporate level, <UNK>, or at a segment level.
Yes, so let's exclude mobility.
I said in my prepared remarks our EMS business, it's $11 billion business going to a $12 billion or $13 billion business, and core income dollars on that business, year on year, are going to grow north of 15%.
In this market, that is pretty good.
I think not that long ago, three, four, five years ago, people were looking at kind of legacy EMS business, going ---+ you know what.
It's going to have GDP-type growth to it and legacy EMS margins to it.
Our folks have kind of transformed that, and we have got amazing customer relationships, and we are quite bullish.
So that part of our business is doing well.
I spoke about the healthcare business, and then what I mentioned briefly is our packaging business, which we recently announced internally that we are going to break that off and have that be a standalone business.
And we are doing that because we think that there is some outstanding opportunities in the marketplace around consumer packaging, whether it be the combination of rigid, flexible, and intelligent type packaging.
We're pretty bullish on that ---+ that we have got a whole group internally, <UNK>, that operates maybe two or three degrees away from our core business that are off with some investment dollars and applying some of our know-how to different macro trends that we see.
We are hopeful in that area, and I am bullish in the core business.
And again, I do not sit here and feel good about guiding you down for Q3, but I still remain very bullish on our mobility sector.
Okay.
Thank you, everyone, for joining us on the call today.
We will be available for any further follow-up questions that you have.
Once again, thank you for your participation and interest in Jabil.
