© Electronics Production | October 23, 2013

Celestica posts profit of 57 million - without BlackBerry

Celestica Q3 revenue landed within the company's guidance, but still 5% lower than Q3 of 2012.
“Celestica delivered a solid third quarter with revenue and adjusted EPS above the midpoint of our guidance range, driven by strong demand in our Communications and Storage end markets,” said Craig Muhlhauser, Celestica President and Chief Executive Officer.

The company recorded revenues of USD 1'492 billion, within the range of its guidance of USD 1'425 to USD 1'525 billion. However, compared to the third quarter of 2012, revenues decreased 5%.

If we were to exclude revenues recorded from BlackBerry for Q3 of 2012, revenues were actually up 5% this quarter.

Other Highlights:
  • IFRS net earnings increased to USD 57.4 million during the quarter, up from USD 43.7 million for the same period last year.
  • Free cash flow (non-IFRS): USD 10.4 million, compared to USD 59.9 million for the third quarter of 2012
  • Diversified end market: 26% of total revenue, increased from 21% of total revenue for the third quarter of 2012

“Through our relentless focus on operational excellence and continuous improvement, we have delivered sequential growth in our adjusted operating margin over the last two quarters, and we are targeting further margin expansion in the fourth quarter, despite a challenging demand environment.”

“We continue to win new business across all of our end markets and are successfully ramping new programs. We remain focused on disciplined cost management, strong operational execution and increasing our asset velocity to drive customer and shareholder value,” Muhlhauser concludes.

Restructuring Update

Due to the company's disengagement from BlackBerry in 2012 and in response to the continued challenging demand environment, Celestica announced in 2012 restructuring actions throughout its network, intending to reduce overall cost structure and improve margin performance.

Celestica currently estimate the total restructuring charges to complete our planned actions to be at the high end of our previously announced range of USD 55 million to USD 65 million. Of this estimated amount, the company has recorded restructuring charges of USD 54.5 million, comprised of USD 44.0 million in 2012 and USD 10.5 million in the first nine months of 2013. The company expect to complete substantially all of the planned restructuring actions by the end of 2013.
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