Celestica Provides Highlights from Its Capital Equipment Virtual Roundtable and Confirmatory Business Update
TORONTO– Celestica Inc. (NYSE: CLS)(TSX: CLS), a leader in design, manufacturing and supply chain solutions for the world’s most innovative companies, hosted an analyst and investor virtual roundtable on its Capital Equipment business and provided a confirmatory business update, today after market close.
During the virtual meeting, Celestica’s management provided participants with an in-depth overview of its Capital Equipment business, reaffirmed its Q2 2021 guidance in the context of recent develo pments in the market (further to its press release of May 26, 2021 announcing the virtual roundtable), and conducted a Q&A with analysts. Speakers were CEO Rob Mionis, CFO Mandeep Chawla and Vice President, Capital Equipment, Gregory Marvell.
Below is a summary of the highlights of the discussion provided by management at today’s event concerning Capital Equipment market expectations and its views on Celestica’s Capital Equipment business:
- Capital Equipment revenues for 2021 are expected to exceed $700 million, representing more than 30% growth over 2020, while its margins are expected to be at high-end of the ATS segment target margin range
- Wafer Fabrication Equipment (WFE) market expected by industry analysts to reach $86 billion by 20241 – a Compound Annual Growth Rate (CAGR2) of 9%
- Display markets for OLED and Mini LED expected by industry analysts to reach $64 billion and $63 billion respectively, by 20253 – a combined CAGR4 of 27%, which is expected to drive display equipment spending higher
- Over the past decade, Celestica has developed comprehensive vertical capabilities and a strategic global footprint to serve leading original equipment manufacturers (OEMs) in the WFE and Display equipment markets
- As part of our diversification strategy, Celestica is pursuing new opportunities in adjacent Capital Equipment markets including robotics, automated warehousing systems, synthetic diamond manufacturing and smart vending
A replay of the webcast along with the related presentation is available at www.celestica.com.
1 Source: Gartner, Inc. (see “Market and Industry Data” below)
2 CAGR represents average annual growth rate from 2020-2024; (2024 est. sales/2020 est. sales)^(1/4)-1
3 Source: DSCC, LEDInside, Arizton (see “Market and Industry Data” below)
4 CAGR represents average annual growth rate from 2021-2025 (2025 est. sales/2021 est. sales)^(1/4)-1
Celestica enables the world’s best brands. Through our recognized customer-centric approach, we partner with leading companies in Aerospace and Defense, Communications, Enterprise, HealthTech, Industrial, Capital Equipment, and Energy to deliver solutions for their most complex challenges. As a leader in design, manufacturing, hardware platform and supply chain solutions, Celestica brings global expertise and insight at every stage of product development – from the drawing board to full-scale production and after-market services. With talented teams across North America, Europe and Asia, we imagine, develop and deliver a better future with our customers.