Celestica sees profit climb in fourth quarter, completes restructuring

TORONTO – Celestica Inc. (TSX:CLS) saw its profits climb to $22.1 million in the fourth quarter as it completed restructuring changes following the loss of a major contract with BlackBerry.

The net earnings amounted to 12 cents per share for the three months ended Dec. 31, 2013. This compared with a profit of $7.2 million, or four cents per share, for the same period a year earlier.

Revenue for the quarter came in at $1.437 billion, compared with $1.496 billion a year ago.

The contract electronics manufacturer says revenue came in line of its guidance of $1.4 to $1.5 billion, despite it being a four per cent drop from the fourth quarter of 2012.

Ex-items, adjusted net earnings were reported at $44.4 million, or 24 cents per share, compared with $50.3 million, or 25 cents per share for the quarter. That was a penny better than the estimates of analysts as compiled by Thomson Reuters.

For the full-year, the Toronto-based company says it had net earnings of $118 million, or 64 cents per share, versus $117.7 million or 56 cents per share in 2012.

Adjusted net earnings for the year were $154.5 million, or 83 cents per share, compared with $205.8 million, or 98 cents per share. Revenue for 2013 was $5.796 billion versus $6.507 billion in 2012.

Celestica said it has completed its planned restructuring charges in the fourth quarter, which resulted in a charges of $17.5 million for the period. Charges for the year totalled $28 million.

“Celestica delivered fourth-quarter revenue and operating margin in-line with our guidance,” said Craig Muhlhauser, Celestica president and chief executive officer.

“We continued to improve profitability throughout 2013, despite a challenging business environment. We also delivered value to our shareholders through share repurchases, while continuing to make the necessary investments in support of our long-term strategy.”

Celestica had lost its contract with BlackBerry, then called Research in Motion, and once its biggest customer, in 2012.