Company screws employees and change the formula on how it decides profit sharing payout. Which they took profit sharing money from employees. If the company is doing so good why screw your own employees? Thanks Jabil!!!!!
They are saving cash to initiate a LBO of Sanmina.
As soon as SANM slips to 50 cents Jabil is going to offer a shareholder 50% premium and sweep up SANM for a cheap 400 Mil. For 400 Mil Jabil gets 7 Bil in revenue. Like shopping at Wal-Mart. Cheap goods but at what value.
Key thing here is Jabil will pick and choose hi margin biz and parallel co's and integrate to JBL system. Low margin undesireable products will just be handed a price increase, take it or leave it. At 400 Million JBL will be in a premium position to let up to 80% of the biz fall off it they choose.
Not only does Jabil gain market share the consolidation takes another price pressure player out.