© luchschen dreamstime.com Electronics Production | July 29, 2014
Solid second quarter for Celestica
Celestica's second quarter revenues ended up at USD 1.472 billion, on the high end of the company's guidance of USD 1.375 to USD 1.475 billion, an increase of 12% sequentially, but a decrease of 2% compared to Q2 2013.
The company recorded an operating margin (non-IFRS) of 3.5%, compared to 2.9% for the second quarter of 2013. Free cash flow (non-IFRS) was USD 40.9 million, compared to USD 50.5 million for the second quarter of 2013. The company's adjusted net earnings (non-IFRS) grew from USD 38.6 million in Q213, to USD 44.9 million during Q214 Revenue dollars from the company's diversified end market grew 11% from the second quarter of 2013 to represent 28% of total revenue, up from 25% of total revenue for the second quarter of 2013 “Celestica delivered a solid second quarter with revenue and adjusted earnings per share at the higher end of our guidance driven primarily by demand strength from our communications end market. As a result of our revenue growth, strong operational performance and focus on continuous improvement, we achieved sequential improvements in operating margin, inventory turnover and free cash flow generation,” said Craig Muhlhauser, Celestica’s President and Chief Executive Officer. “As we look to the future, we remain confident in our strategy and ability to further accelerate our progress by leveraging our strong foundation of innovation and operational excellence through continued investments in people, capabilities, and technologies that will enable our customers’ success.” “In addition, we are pleased to announce our intent to launch a normal course issuer bid this quarter based on our confidence to consistently generate free cash flow for the necessary investments to support our growth, while returning excess capital to shareholders through share repurchases.”