© Celestica Electronics Production | August 09, 2019
Revenue down 15% YoY in 2Q for Celestica
Celestica Inc. announced 2Q/2019 (ended June 30, 2019) revenue of USD 1.45 billion, at the midpoint of its 2Q/2019 guidance range, decreased 15% compared to USD 1.70 billion for the second quarter of 2018.
The operating margin (non-IFRS) stood at 2.5%, slightly above the 2Q/2019 guidance of 2.4%. "Celestica delivered second quarter results in line with our guidance, including another quarter of strong non-IFRS free cash flow," said Rob Mionis, President and CEO. "Our CCS segment delivered improved sequential and year-to-year margin performance and we continue to progress on our portfolio optimization actions." "While the ongoing weak demand in our Capital Equipment business continues to adversely impact our ATS segment performance, our other ATS businesses are performing well, as we ramp new programs and continue to drive productivity. Despite the volatility, we believe that capital equipment remains an attractive market in the long term, and that we have the right strategy, relationships and capabilities in place to be successful in this business in future periods." "As we navigate the challenging demand environment, we remain committed to executing our transformation plan. We believe that the end result will be a more diversified business, capable of delivering consistent, profitable growth." Restructuring Update "We have recorded approximately USD 60 million in restructuring charges from the commencement of our cost efficiency initiative through the end of 2Q/2019, including USD 9.0 million of restructuring charges recorded in 2Q/2019. Based on current plans, we estimate total restructuring charges for this initiative to be at the high end of our previously disclosed range of USD 50 - 75 million, and continue to expect the remainder of the charges to be recorded by the end of 2019", a press release states.