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Celestica Inc. (NYSE, TSX: CLS), a global leader in the delivery of end-to-end product lifecycle solutions, today announced financial results for the second quarter ended June 30, 2013.
Second Quarter 2013 Highlights
- Revenue: $1.495 billion, above our guidance of $1.375 to $1.475 billion (announced April 23, 2013), decreased 14% compared to the second quarter of 2012
- Revenue up 9% compared to the first quarter of 2013, and up 3% compared to the second quarter of 2012 (after excluding revenue from BlackBerry Limited for the second quarter of 2012)
- IFRS EPS: $0.15 per share, compared to $0.11 per share for the second quarter of 2012
- Adjusted EPS (non-IFRS): $0.21 per share, above our guidance of $0.13 to $0.19 per share (announced April 23, 2013), compared to $0.22 per share for the second quarter of 2012
- Free cash flow (non-IFRS): $50.5 million, compared to $16.9 million for the second quarter of 2012
- Diversified end market: 25% of total revenue, increased from 19% of total revenue for the second quarter of 2012
“Celestica delivered a solid second quarter with revenue and adjusted EPS above our guidance range. We generated strong free cash flow and improved our return on invested capital, driven by stronger than expected demand in our communications end market,” said Craig Muhlhauser, Celestica President and Chief Executive Officer.
“Despite the challenging economic environment, we are projecting continued growth in our diversified end market for the third quarter. We continue to target improvements in quality, profitability, free cash flow, and return on invested capital through our focus on operational excellence and making our customers successful.”
“In addition, we are announcing our intent to launch a normal course issuer bid this quarter. This action reinforces our confidence in our strategy, execution and ability to maintain a strong balance sheet and generate free cash flow to make the necessary investments to support our growth, while returning excess capital to the shareholders through share repurchases.”
Restructuring Update
Due to our disengagement from BlackBerry Limited (BlackBerry), formerly Research In Motion Limited, in 2012 and in response to the continued challenging demand environment, in 2012 we announced restructuring actions throughout our global network to reduce our overall cost structure and improve our margin performance. We currently estimate the total restructuring charges to complete our planned actions to be within our previously announced range of $55 million to $65 million. Of this estimated amount, we have recorded $54.7 million, comprised of $44.0 million in 2012 and $10.7 million in the first half of 2013, including $3.4 million in the second quarter of 2013 (second quarter of 2012 — $20.1 million). We expect to complete the remaining restructuring actions by the end of 2013.
