Celestica Posts Q3 2017 Revenue of $1.5B

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Celestica Inc. has announced revenue of $1.53 billion for the third quarter ended September 30, 2017, down by 2% compared to the third quarter of 2016. Revenue was within the company's previously provided guidance range of $1.5 to $1.6 billion.

Revenue from the company's Communications end market increased by 2% compared to the third quarter of 2016, and represented 45% of total revenue, compared to 43% of total revenue for the third quarter of 2016. Revenue for the Advanced Technology Solutions end market—comprised of its aerospace and defense, industrial, smart energy, healthcare, semiconductor equipment, and consumer businesses—decreased by 4% compared to the third quarter of 2016, and represented 31% of total revenue, compared to 32% of total revenue for the third quarter of 2016.

Finally, revenue dollars from the Enterprise end market—comprised of its servers and storage businesses—decreased by 5% compared to the third quarter of 2016, and represented 24% of total revenue, compared to 25% of total revenue for the third quarter of 2016.

"Despite some headwinds driven by dynamic demand and volatility in the market, we remain committed to our strategy," said Rob Mionis, president and CEO, Celestica. "We are encouraged by our progress in evolving and diversifying our customer and product portfolios across our business, particularly in the aerospace and defense space. Moving forward, we will continue to invest to grow our business, pursue strategic acquisitions and return cash to our shareholders."

The company also announced its intention to launch a new normal course issuer bid.

Third Quarter 2017 Highlights

• IFRS EPS: $0.23 per share, compared to $0.37 per share for the third quarter of 2016. IFRS EPS for the third quarter of 2016 included a net benefit of $0.11per share related to income taxes (Net Tax Benefit), discussed below
• Adjusted EPS (non-IFRS): $0.31 per share, within our previously provided guidance range of $0.28 to $0.34 per share, compared to $0.43 per share for the third quarter of 2016. Adjusted EPS for the third quarter of 2016 included the $0.11 per share Net Tax Benefit
• Operating margin (non-IFRS): 3.6%, compared to 3.7% at the mid-point of our expectations, and 3.8% for the third quarter of 2016
• Adjusted ROIC (non-IFRS): 18.9%, compared to 21.2% for the third quarter of 2016
• Free cash flow (non-IFRS): negative $44.1 million, compared to positive $99.5 million for the third quarter of 2016 (positive $2.2 million for the first nine months of 2017 compared to positive $40.9 million for the first nine months of 2016)