© begemot 30 dreamstime.com Electronics Production | April 29, 2019
Celestica missed the mark in 1Q19
For Q1 2019, the EMS provider’s revenue was below the guidance range as a result of weaker than expected demand in the CCS segment, primarily late quarter demand softness from certain communications customers.
Celestica’s 1Q19 revenues amounted to USD 1.43 billion, compared to the 1Q19 guidance range of USD 1.45 to USD 1.55 billion, a decrease of 4% compared to USD 1.50 billion for the first quarter of 2018. The company’s operating margin sat at 2.4%, compared to the guidance range of 2.6% and 3.0% at 1Q 2018. IFRS net earning amounted to USD 90.3 million, up USD 76.2 million YoY. "Celestica's first quarter results reflect the near-term challenges we are seeing in some of our key end markets" says Rob Mionis, President and CEO, in a press release. "Despite this, we improved cash generation and aggressively executed on our share repurchases. During this lower revenue period, we will continue to implement our productivity initiatives in order to more efficiently align cost to current volumes, and to improve the stability and profitability of our business.” The Advanced Technology Solutions (ATS) segment revenue increased 9% compared to Q1 2018, and represented 40% of total revenue as compared to 36% for Q1 2018. The Connectivity & Cloud Solutions (CCS) segment revenue decreased 12% compared to Q1 2018, and represented 60% of total revenue as compared to 64% for Q1 2018. "We remain committed to our transformation strategy which we believe will drive more consistent, diversified and sustainable results in the future. Our CCS portfolio review is mostly complete and we are encouraged by the related benefits. As we continue to drive improvement in both of our segments, we intend to maintain our balanced approach to capital allocation, supported by a strong balance sheet," Mionis continues. Celestica continues to progress with the review of its CCS revenue portfolio (CCS Review). The company commenced this review in the second half of 2018 to address under-performing programs that no longer align with its strategic objectives. The CCS Review is currently expected to result in a decline in the CCS segment revenue of approximately USD 500 million over the next 9 to 15 months The company says that the decrease in CCS segment revenue in Q1 2019 as compared to the prior year period was primarily due to planned program disengagements in the company’s Enterprise end market resulting from the CCS Review, as well as late quarter demand softness from certain Communications customers. “We saw a reduction in orders from several Communications customers, as they consumed their inventory buffers previously built up to manage materials constraints. Additionally, reduced demand for some programs resulted from the impact of next generation program transitions. We expect these adverse market dynamics in our Communications end market to continue into the second quarter of 2019,” the press release reads. If demand softness in our Communications end market persists into the second half of 2019, total company revenue for 2019 could decrease year over year at the high end of the single digit percentage range previously anticipated to result from the CCS Review alone.
Dymax Corp. expanding into North Carolina Global chemical manufacturer Dymax Corporation has pledged to create dozens of new jobs at a new production site in Gaston County, Commerce Secretary Anthony Copeland has announced.
Philips, U.S. Gov team up to combat COVID-19 The Netherlands-based Royal Philips and the U.S. Government have announced they will collaborate to produce hospital ventilators at Philips’ U.S. manufacturing locations.
Datwyler adjusts its capacity at Mobility plants Datwyler says it is doing everything possible to protect the health of its employees, combat the spread of the coronavirus, and prevent interruptions to business operations. Adding to that the company is adjusting the capacity, cost structures and capital expenditure at its Mobility business unit.
EMA Design Automation partners with Dassault Systèmes EMA Design Automation says it has entered into a partnership with Dassault Systèmes. The companies will work towards the joint mission of connecting teams across a common data model for unified product development and collaboration.
Zollner Elektronik secures Nadcap Accreditation once again Zollner Elektronik AG has once again been successful in achieving renewed accreditation in accordance with the AC7120 international audit program of the National Aerospace and Defense Contractors Accreditation Program (Nadcap).
tbp does its part to speed up delivery of respiratory equipment Since the outbreak of COVID-19 in the Netherlands, tbp electronics has accelerated the supply of crucial components to clients in the medical sector.
OJ Electronics affected by Malaysian lockdown Danish OJ Electronics, a designer and developer of electronic controls for underfloor heating and HVAC controls and power, says that it has – until now – managed to keep its production and supply chain activities up running, without any significant impact on deliveries.
Medtronic plans to make ventilators together with Foxconn Within four to six weeks, the medtech company is expecting to be producing ventilators together with the Taiwanese EMS-giant at its plant in Wisconsin.
U.S. chipmaking industry seeks to slow export rule changes Nine semi-conductor industry groups urged U.S. Commerce Secretary Wilbur Ross slow the momentum to finalizing recently proposed rules that would further limit U.S. exports of semiconductors and other technology to China.
Flex Ltd. sets goal of 30,000 ventilators a month Silicon Valley-based Flex Ltd. has started mass assembly of critically needed ventilators to meet surging demand for the machines across the United States in the wake of the coronavirus pandemic.
Elvia PCB supports the fight against COVID-19 with PCBs European PCB manufacturer, Elvia PCB Group, has been working non-stop since the beginning of the COVID-19 pandemic. The company is part of a project to manufacture thousands of ventilators by mid-May.
Neways Electronics Neunkirchen introduces short-time work Neways Electronics Neunkirchen (NEN) in Germany, is responding to the consequences of the COVID-19 outbreak and will be introducing short-time work from April 1st, 2020.
European semiconductor sales up 2.4% in February 2020 The European Semiconductor Industry Association (ESIA) says that European sales of semiconductors reached USD 3.323 billion in February 2020, an increase of 2.4% compared to the January 2020 total of USD 3.247 billion.
Hisense Gorenje extends production shutdown Hisense Gorenje says that it is extending its production shutdown at all its factories in Europe for another week.
Plexus starts production of ventilators in Scotland EMS provider Plexus is participating in the UK government’s efforts to expedite the manufacturing of ventilators in aide of the fight against COVID-19.
NCAB appoints Peter Kruk as new CEO Following the announcement late last year that Hans Ståhl planned to retire in 2020, the board of NCAB Group has now found his successor. Peter Kruk will be taking over as the new CEO of the PCB supplier.
Comtech Telecomm Corp. issues business update New York-based Comtech Telecommunications Corp. has issued a statement on the withdrawal of its business outlook for its fiscal year ending July 31, 2020, as well as an update on its proposed purchase of the Gilat Satellite Networks Ltd.
Xerox provides HP acquisition update Xerox has issued a statement regarding its earlier proposal to buy HP Inc.
As Samsung Display exits the LCD market a major reshuffle is expected According to the latest investigations by the WitsView research division of TrendForce, the oversupply of TV panels in 2019 resulted in a major price drop. As such, panel manufacturers hoped to utilise their excess capacity in 2020 through increasing their production of monitor panels, with Samsung Display (SDC) having the most extensive plans.
Swedish PCB manufacturer updates machine park PCB manufacturer MMAB’s factory in the south of Sweden recently got a new drilling area with updated machines.
Ventec races to build up regional inventories to fight COVID-19 The electronics industry is playing a major role in supporting increased requirements for critical medical devices during the current COVID-19 pandemic. And with that an increase in demand of the building blocks is to be expected.
Elmatica sees a spike in demand - responds with growth in staff Growing demand, new customers and an increase in business within knowledge intensive industries, has reinforced the need for another Country Manager in Poland, a new Technical Manager and an additional resource in the Customer Service Department.
Co-operation negotiations completed at Etteplan Etteplan initiated co-operation negotiations on March 18th 2020 due to temporary changes in customer demand caused by the COVID-19 pandemic. Now, the negotiations have come to a complete.
Indian electronics company support the fight against COVID-19 Indian engineering and technology solutions company, Cyient, says it’s received clearance for its Mysore facility to run its MedTech manufacturing lines to support the production of medical equipment critical in the fight against COVID-19Load more news