It generates the equivalent of:
String s = new StringBuilder("abc")
           .append(methodReturningAString())
           .append("ghi")
           .append(anotherMethodReturningAString())
           .append("omn")
           .append("blablabla")
           .toString();
It is smart enough to pre-concatenate static strings (i.e. the "omn" + "blablabla").  You could call the use of StringBuilder a "performance trick" if you want.  It is definitely better for performance than doing five concatenations resulting in four unnecessary temporary strings.  Also, use of StringBuilder was a performance improvement in (I think) Java 5; prior to that, StringBuffer was used.
Edit: as pointed out in the comments, static strings are only pre-concatenated if they are at the beginning of the concatenation.  Doing otherwise would break order-of-operations (although in this case I think Sun could justify it).  So given this:
String s = "abc" + "def" + foo() + "uvw" + "xyz";
it would be compiled like this:
String s = new StringBuilder("abcdef")
           .append(foo())
           .append("uvw")
           .append("xyz")
           .toString();