ST. PETERSBURG, FL -- Jabil's chief executive said the company expects to see a strong uptick at its Green Point materials development business unit as handset demand increases.

On a conference call with analysts this week following the close of its fiscal 2016 third quarter, Mark Mondello acknowledged the ODM expects the handset rebound to begin in August, two months later than its previous forecast of June. But, he added, the overall trend is similar to previous years, albeit with a more acute slump in demand.

"The good news is new product ramps are going largely as planned. In combining this data point with the hyper operating leverage of the Green Point business and our unchanged market share position with the world’s leading brand in the space, Jabil is well positioned for a snapback type recovery. We believe this recovery should begin in the next five to six weeks."

Jabil's $11 billion EMS business has seen operating margins grow from 2.3% margins to above 3% over the past six quarters, and Mondello said the gains are sustainable throughout the next fiscal year and beyond. "I believe this large-scale business will grow 3% to 4% in terms of core earnings year-on-year when comparing the first half of fiscal 2017 to the first half of fiscal 2016."

Jabil's EMS business comprises roughly 130 to 150 customers, Mondello estimated.

The company's healthcare business is accelerating across a variety of hardware platforms and wearable technologies, Mondello added. He expects the core earnings at its healthcare and packaging businesses to grow 8% to 10% year-over-year in the first half of fiscal 2017.

Jabil's 2016 fiscal year ends Aug. 31.

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