Celestica Inc. (NYSE, TSX: CLS), a global leader in the delivery of end-to-end product lifecycle solutions, today announced financial results for the first quarter ended March 31, 2014.
First Quarter 2014 Highlights
- Revenue: $1.312 billion, compared to our guidance of $1.30 to $1.40 billion (announced January 30, 2014), decreased 4% compared to the first quarter of 2013
- IFRS EPS: $0.20 per share, compared to $0.06 per share for the first quarter of 2013
- Adjusted EPS (non-IFRS): $0.26 per share, above the range of our guidance of $0.17 to $0.23 per share (announced January 30, 2014) due to a $0.06 per share net income tax benefit recognized in the first quarter of 2014 as described below. Excluding the $0.06 per share net income tax benefit, adjusted EPS increased $0.04 per share compared to $0.16 per share for the first quarter of 2013.
- Operating margin (non-IFRS): 3.1%, compared to 2.5% for the first quarter of 2013
- Repurchased 1.2 million subordinate voting shares for cancellation for $12.1 million under our Normal Course Issuer Bid (NCIB), and launched a $27 million pre-funded program share repurchase in the first quarter of 2014
- Free cash flow (non-IFRS): negative $16.2 million, compared to positive $13.5 million for the first quarter of 2013
- Revenue dollars from Diversified end market grew 10% from the first quarter of 2013 to represent 28% of total revenue, up from 24% of total revenue for the first quarter of 2013
"Celestica delivered first quarter revenue at the low end of our guidance range as end market demand continued to be volatile, primarily within our Communications business. Despite the challenges, we delivered operating results in-line with our beginning-of-quarter expectations as a result of our focus on continuous improvement and disciplined cost management," said Craig Muhlhauser, Celestica President and Chief Executive Officer. "We are encouraged by the progress that we have made in our business with double-digit year-over-year revenue growth in our Diversified and Storage end markets. We are also pleased with our operating margin improvements compared to the first quarter of 2013."
"We expect to build on this momentum during the remainder of 2014 by continuing to focus on making our customers successful, and investing to achieve long-term growth and profitability for Celestica."