Celestica's profit drops 76% in Q1

While revenue for the first quarter of 2013 was within the range of guidance at USD 1.37 billion – its still a 19% decrease compared to the same period last year – mainly due to the fact the the company lost its once biggest client, RIM. Free cash flow (non-IFRS) dropped to USD 13.5 million, compared to USD 44.4 million for the first quarter of 2012. IFRS net earnings dropped down 76% from USD 43.2 million in the first quarter of 2012 to USD 10.5 million during Q1 of 2013. “Celestica delivered first quarter revenue consistent with our expectations, while achieving profitability at the high end of the guidance range driven through solid execution and disciplined cost management,” said Craig Muhlhauser, Celestica President and Chief Executive Officer. “With the overall economic outlook expected to remain challenging, we continue to focus our efforts on delivering value to our customers through strong operational performance, and on improving our financial performance through productivity improvements and effectively managing our costs and resources, while making the necessary investments to support our longer term objectives.” “We completed our manufacturing services for RIM and the related transition activities in 2012. Due to the historical significance of RIM to our operations and in response to the continued challenging demand environment, in July 2012 we announced restructuring actions throughout our global network to reduce our overall cost structure and improve our margin performance. We continue to estimate the total restructuring charges to complete our planned actions to be in the range of USD 55 million to USD 65 million. Of this estimated amount, we recorded USD 44.0 million in 2012 and USD 7.3 million in the first quarter of 2013. We expect to complete the remaining actions by the end of 2013,” the company writes in a statement. For the second quarter ending June 30, 2013, the company anticipate revenue to be in the range of USD 1.375 to USD 1.475 billion.