Celestica’s profit: not what it used to be
Even though EMS-provider Celestica’s first quarter revenues for 2015 was within the company’s guidance with USD 1.299 billion, revenues still decreased 1% compared to the first quarter of 2014.
“Celestica delivered revenue and adjusted earnings per share in line with our guidance,” said Craig Muhlhauser, Celestica’s President and Chief Executive Officer. “Despite a challenging demand environment, we also delivered yearover-year improvement in free cash flow, driven by our continued strong operational performance throughout our global network.”
Revenues from the company’s diversified end market represented 28% of total revenue, consistent with the first quarter of 2014. Operating margin (non-IFRS) amounted to 3.1%, which is flat compared to the first quarter of 2014.
Celestica’s free cash flow (non-IFRS) was positive at USD 22.0 million, compared to negative USD 16.2 million for the first quarter of 2014. IFRS net earnings amounted to USD 19.7 million, a decrease from USD 37.3 million during the same quarter last year.
“In addition, our board of directors has authorized a substantial issuer bid to repurchase for cancellation up to USD 350 million of our subordinate voting shares. Our intention to launch an issuer bid, along with the investments we are making to support the future growth and profitability of our business, reinforce our confidence in our strategy and ability to generate free cash flow to support our growth, while continuing to return capital to our shareholders through share repurchases.”
For the second quarter Celestica anticipate revenue to be in the range of USD 1.35 billion to USD 1.45 billion.