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Celestica Announces Second Quarter 2020 Financial Results

Celestica Inc. (TSX: CLS) (NYSE: CLS), a leader in design, manufacturing and supply chain solutions for the world’s most innovative companies, announced financial results for the quarter ended June 30, 2020 (Q2 2020).

Q2 2020 Highlights

  • Revenue: $1.49 billion, increased 3% compared to $1.45 billion for the second quarter of 2019 (Q2 2019), and was higher than anticipated.
  • Operating margin (non-IFRS)*: 3.4%, compared to 2.5% for Q2 2019.
  • Advanced Technology Solutions (ATS) segment revenue**: decreased 11% compared to Q2 2019, and represented 34% of total revenue, compared to 39% of total revenue for Q2 2019; ATS segment margin** was 3.1%, compared to 2.8% for Q2 2019.
  • Connectivity & Cloud Solutions (CCS) segment revenue**: increased 12% compared to Q2 2019, and represented 66% of total revenue, compared to 61% of total revenue for Q2 2019; CCS segment margin** was 3.6%, compared to 2.4% for Q2 2019.
  • IFRS earnings per share (EPS): $0.10 per share, compared to a $0.05 loss per share for Q2 2019.
  • Adjusted EPS (non-IFRS)*: $0.25 per share, compared to $0.12 per share for Q2 2019.
  • Adjusted return on invested capital (non-IFRS)*: 12.9%, compared to 8.4% for Q2 2019.
  • Free cash flow (non-IFRS)*: $37.9 million, compared to $46.5 million for Q2 2019.
  • Repaid $61.0 million of outstanding term loan borrowings.
  • Global network operating at approximately 95% of normal workforce levels.
  • Undrawn $450 million revolver(1).
  • Approximately $435 million in cash/cash equivalents.

“Celestica delivered strong revenue growth and improved non-IFRS operating margin, paid down long-term debt, and continued to generate robust non-IFRS free cash flow in the second quarter,” said Rob Mionis, President and CEO, Celestica.

“Celestica’s global team remains focused on executing for our customers despite the challenging macro environment caused by the COVID-19 pandemic. Our results demonstrate the progress we are making on our strategy and our on-going commitment to generating long-term sustainable profitable growth.”

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