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Celestica Inc. has announced financial results for the first quarter ended March 31, 2017. Revenue reached $1.47 billion, above the mid-point of previously provided guidance range of $1.4 to $1.5 billion, and up by 9% compared to the first quarter of 2016.
Revenue from the Advanced Technology Solutions end market was relatively flat compared to the first quarter of 2016, and represented 34% of total revenue, compared to 37% of total revenue for the first quarter of 2016.
“Celestica delivered a strong first quarter, with 9% year-over-year revenue growth, and 22% growth in operating earnings, compared to the first quarter of 2016,” said Rob Mionis, Celestica’s President and CEO. “This marks our sixth consecutive quarter of year-over-year growth in revenue and operating earnings and our highest first quarter operating margin performance in over 15 years as a result of our relentless focus on profitable growth.
"I am pleased with our strong start to the year. We are making great progress as we execute our strategy in this dynamic market environment. We are focused on driving long-term profitable growth and increasing value to our customers and shareholders."
Renaming of End Markets
As part of the company’s recent organizational initiatives, it has aligned its end markets into two customer focused areas: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). ATS consists of the former Diversified and Consumer end markets, and CCS consists of the existing Communications end market and new Enterprise end market (defined below). Due to the decreasing size of its Consumer end market, the company combined it with its previously-reported Diversified end market to form its ATS end market commencing in the first quarter of 2017.
As a result, this end market consists of aerospace and defense, industrial, smart energy, healthcare, semiconductor equipment and consumer. Also in the first quarter of 2017, due to the converging technologies of its Storage and Servers end markets, the company combined them into a single “Enterprise” end market for reporting purposes. All period percentages herein reflect these changes.
Second Quarter 2017 Outlook
For the quarter ending June 30, 2017, Celestica anticipates revenue to be in the range of $1.5 billion to $1.6 billion, non-IFRS operating margin to be 3.7% at the mid-point of its expectations, and non-IFRS adjusted earnings per share to be in the range of $0.29 to $0.35.
About Celestica
Celestica is dedicated to delivering end-to-end product lifecycle solutions to drive our customers’ success. Through our simplified global operations network and information technology platform, we are solid partners who deliver informed, flexible solutions that enable our customers to succeed in the markets they serve. Committed to providing a truly differentiated customer experience, our agile and adaptive employees share a proud history of demonstrated expertise and creativity that provides our customers with the ability to overcome complex challenges. For further information about Celestica, click here.
