Despite Lower One-Time Charges, Celestica's Earnings Down
TORONTO -- Celestica's second-quarter net income fell 18% from a year ago to $38.6 million, the company said last night.
Revenue for the quarter ended June 30 fell 14% year-over-year to $1.5 billion. Excluding the loss of revenue from ex-customer RIM, revenue was up 3% from 2012.
Free cash flow was $50.5 million, up from $16.9 million for the second quarter of 2012.
Celestica took $3.4 million in restructuring charges during the period, down from $20.1 million a year ago, and expects to complete its remaining restructuring actions by the end of 2013.
The contract electronics assembler's Diversified End-Market segment made up 25% of total revenue, up from 19% in 2012.
"Celestica delivered a solid second quarter with revenue and adjusted EPS above our guidance range. We generated strong free cash flow and improved our return on invested capital, driven by stronger than expected demand in our communications end market," said Craig Muhlhauser, president and chief executive officer.
For the period ending Sept. 30, Celestica anticipates revenue of $1.425 billion to $1.525 billion.
"Despite the challenging economic environment, we are projecting continued growth in our diversified end-market for the third quarter. We continue to target improvements in quality, profitability, free cash flow, and return on invested capital through our focus on operational excellence and making our customers successful."
End-Markets by Quarter as a Percentage of Total Revenue
| 2012 | 2013 | ||||||||||||
| Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | |||||||
| Communications ....... | 33% | 32% | 37% | 37% | 35% | 40% | 42% | ||||||
| Consumer ................. | 23% | 21% | 15% | 9% | 18% | 7% | 7% | ||||||
| Diversified (i) ............. | 19% | 19% | 21% | 23% | 20% | 24% | 25% | ||||||
| Servers ..................... | 15% | 16% | 14% | 17% | 15% | 16% | 14% | ||||||
| Storage ..................... | 10% | 12% | 13% | 14% | 12% | 13% | 12% | ||||||
| Revenue (in billions) . | $1.69 | $1.74 | $1.58 | $1.50 | $6.51 | $1.37 | $1.50 | ||||||
i. Diversified end market is comprised of industrial, aerospace and defense, healthcare, solar, green technology, semiconductor equipment and other.
