Celestica announces Q2 results
Jul 27, 2007
- Revenue of $1,937 million, up 5% sequentially from first quarter of 2007 and down 13% year-over-year - GAAP earnings per share of $0.11 (including the benefit of a net tax recovery of $32 million or $0.14 per share) compared to a loss of ($0.13) per share last year - Adjusted net earnings per share of $0.02 compared to $0.13 per share a year ago - Inventory turns of 7.3x compared to 6.2x in the first quarter of 2007 - Cash generated from operations of $56 million - Q3 revenue guidance of $2.0 - $2.2 billion, adjusted net earnings per share of $0.04 - $0.12
(All amounts in U.S. dollars. Per share information based on diluted shares outstanding unless noted otherwise.)
Revenue was $1,937 million, down 13% from $2,224 million in the second quarter of 2006. Net earnings on a GAAP basis for the second quarter were $24.9 million or $0.11 per share, compared to GAAP net loss of ($30.3) million or ($0.13) per share for the same period last year. Included in GAAP net earnings for the quarter are the impacts of a $32 million net deferred tax recovery related primarily to the tax benefit of previous years' write-down of restructured Canadian operations and restructuring charges of $2.5 million. For the same period in 2006, restructuring charges were $20 million.
Adjusted net earnings for the quarter were $4.9 million or $0.02 per share compared to adjusted net earnings of $29.1 million or $0.13 per share for the same period last year. The term adjusted net earnings is defined as net earnings before amortization of intangible assets, gains or losses on the repurchase of shares and debt, integration costs related to acquisitions, option expense, option exchange costs and other charges, net of tax and significant deferred tax write-offs or recovery (detailed GAAP financial statements and supplementary information related to adjusted net earnings appear at the end of this press release). These results compare with the company's guidance for the second quarter, announced on April 25, 2007, of revenue in the range of $1.85 billion to $2.05 billion and adjusted net earnings (loss) per share in the range of ($0.03) to $0.05.
For the six months ended June 30, 2007, revenue was $3,779 million compared to $4,158 million for the same period in 2006. Net loss on a GAAP basis was ($9.4) million or ($0.04) per share compared to net loss of ($47.7) million or ($0.21) per share last year. Adjusted net loss for the first half of 2007 were ($4.2) million or ($0.02) per share compared to adjusted net earnings of $46.5 million or $0.20 per share for the same period in 2006.
"Our second quarter results demonstrate the steady progress we are making as a result of the turnaround plans implemented earlier this year," said Craig Muhlhauser, President and Chief Executive Officer, Celestica. "Revenue is trending upwards, working capital performance is improving and we continue to make operational improvements in North America and Europe. Our operating profit is still at the early stages of recovery and we expect to continue to build on the improvements made to date."
For the third quarter ending September 30, 2007, the company expects revenue will be in the range of $2.0 billion to $2.2 billion, and adjusted net earnings per share to range from $0.04 to $0.12.