Celestica reports slight drop in revenues but boon in earnings per share

Canada-based Celestica’s revenues for Q1 2014 were 4% lower than the year before, according to financial results released today. In addition, its revenues of $1,312 million fell only just within the range earlier predicted.

However, other figures within the results showed a marked improvement, with earnings per share (EPS) under International Financial Reporting Standards reaching $0.20 per share. The same figure for Q1 2013 was $0.06 per share. The company had predicted a figure of $0.17 to $0.23. Net earnings under the same period rose from $10.5 million to $37.3 million. The original prediction for the company’s revenues, released in January, were for $1,300 million to $1,400 million.

Craig Muhlhauser, CEO and president of Celestica, said, "Celestica delivered Q1 revenue at the low end of our guidance range as end market demand continued to be volatile, primarily within our Communications business. Despite the challenges, we delivered operating results in-line with our beginning-of-quarter expectations as a result of our focus on continuous improvement and disciplined cost management."

Muhlhauser added, "We are also pleased with our operating margin improvements compared to the first quarter of 2013. We expect to build on this momentum during the remainder of 2014 by continuing to focus on making our customers successful, and investing to achieve long-term growth and profitability for Celestica."

Celestica made a number of developments last year in relation to its solar business. In September, it was announced that its solar lab had been approved by TUV Rheinland Photovoltaic Testing Laboratory (PTL) to provide testing for solar panels at its lab in Toronto. This was swiftly followed by the news that it was teaming with TUV Rheinland PTL, PV Evolution Labs, and Greentech Media to set up testing facilties in Toronto, Canada; Tempe, Arizona; and Berkeley, California to test energy yield across North American climates. Also within its solar business, Celestica began manufacturing Lumos’s LSX frameless modules under a multi-year agreement.