Celestica Announces Second Quarter 2019 Financial Results
TORONTO — Celestica Inc. (TSX: CLS)(NYSE: CLS), a leader in design, manufacturing and supply chain solutions for the world’s most innovative companies, today announced financial results for the quarter ended June 30, 2019 (Q2 2019).
Q2 2019 Highlights
- Revenue: $1.45 billion, at the midpoint of our Q2 2019 guidance range of $1.4 to $1.5 billion, decreased 15% compared to $1.70 billion for the second quarter of 2018 (Q2 2018).
- Operating margin (non-IFRS)*: 2.5%, slightly above our Q2 2019 guidance of 2.4% at the midpoint of our revenue and non-IFRS adjusted EPS* guidance ranges, compared to 3.1% for Q2 2018.
- Advanced Technology Solutions (ATS) segment revenue** increased 2% compared to Q2 2018, and represented 39% of total revenue as compared to 33% for Q2 2018; ATS segment margin** was 2.8% compared to 5.1% for Q2 2018, driven primarily by losses within our capital equipment business (see Segment Updates below).
- Connectivity & Cloud Solutions (CCS) segment revenue** decreased 23% compared to Q2 2018, and represented 61% of total revenue as compared to 67% for Q2 2018; CCS segment margin** was 2.4% compared to 2.2% for Q2 2018.
- IFRS earnings (loss) per share: $0.05 loss per share, compared to $0.11 earnings per share for Q2 2018.
- Adjusted EPS (non-IFRS)*: $0.12 per share, at the midpoint of our Q2 2019 guidance range of $0.09 to $0.15 per share, compared to $0.29 per share for Q2 2018.
- Adjusted ROIC (non-IFRS)*: 8.4%, compared to 16.0% for Q2 2018.
- Free cash flow (non-IFRS)*: positive $46.5 million, compared to negative $45.6 million for Q2 2018.
- Repurchased and cancelled 3.2 million subordinate voting shares for $22.8 million under our normal course issuer bid.
“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.”