Celestica Inc. reports developments in data center infrastructure, advanced technology solutions, and supply chain operations under the CLS ticker on the NYSE and TSX.
Company news commonly covers quarterly and annual results, outlook updates, share repurchases, governance changes, annual meeting matters, and product activity for AI-scale networking. Recent operating themes include Connectivity & Cloud Solutions, Advanced Technology Solutions, DS6000-series 1.6TbE switches, open standards-based Ethernet networking, and collaboration-driven platforms for large-scale AI and machine learning infrastructure.
Celestica Inc. (NYSE: CLS) reaffirms its financial guidance for Q4 2021 despite global supply chain challenges. The company reports a strong demand across most end markets, attributing its stability to the dedication of its global team. CEO Rob Mionis is optimistic about achieving top-line growth and a record quarterly non-IFRS operating margin, with a positive outlook for 2022. The company emphasizes its commitment to supporting customer needs and executing strategic objectives, underscoring a promising trajectory as it concludes the fiscal year.
Celestica has finalized the acquisition of Singapore-based PCI Private Limited, an electronics manufacturing services provider, enhancing its operational capabilities in Asia. This strategic move aims to bolster Celestica's presence in key markets and diversify its customer base, leveraging PCI's 50 years of expertise. The acquisition, valued at $220 million, was funded using available cash and borrowings under Celestica's credit facility. This aligns with Celestica's high-growth strategy, optimizing its Advanced Technology Solutions portfolio and integrating PCI's resources to expand product development across various sectors.
Celestica Inc. reported Q3 2021 revenue of $1.47 billion, a 5% decline from Q3 2020. However, their non-Cisco business grew by 6%. The non-IFRS operating margin improved to 4.2%, marking a record high. The company anticipates Q4 2021 revenue between $1.425 billion and $1.575 billion, with an adjusted EPS guidance of $0.35 to $0.41. Celestica expects 2022 growth, projecting revenue to reach at least $6.3 billion and adjusted EPS to rise by 20% compared to 2021, driven by strong operational performance and market dynamics.
Celestica (TSX: CLS, NYSE: CLS) announced a partnership with ECM to introduce its patented Printed Circuit Board (PCB) stator technology to the Aerospace and Defense market at AUSA 2021. This innovation delivers lightweight, compact, and efficient motor solutions that are up to 70% lighter and 50% smaller than traditional motors, with lower electromagnetic interference (EMI) and heat signatures. Celestica will provide full lifecycle support for product development. The company also showcased other technologies, including the Gen-4/5 OpenVPX backplanes, demonstrating its commitment to advancing military technology.
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On September 21, 2021, Platinum Equity announced the sale of PCI Limited, an electronics manufacturing services provider, to Celestica Inc. for $306 million in cash. The transaction is expected to close by mid-fourth quarter 2021, pending regulatory approval. Since its acquisition by Platinum Equity in April 2019, PCI has seen a revenue increase of over 40% and improved profitability. PCI serves various markets, including automotive and medical, and aims to leverage Celestica's global presence for future growth.
Celestica has announced its acquisition of PCI Limited for $306 million in cash, aiming to enhance its engineering capabilities and diversify its customer base. The acquisition is expected to bolster Celestica's annual revenue by approximately $325 million in 2021, with strong EBITDA margins and cash flow. The deal is projected to be accretive to non-IFRS adjusted EPS in the first year, prompting an increase in the 2022 EPS growth outlook from 10% to 20%.
The transaction is expected to close in mid-Q4 2021.
Celestica Inc. (TSX: CLS) has appointed Luis Müller to its Board of Directors, effective August 31, 2021. Müller brings 25 years of experience in the semiconductor sector, currently serving as CEO of Cohu, Inc. He has a track record in strategic planning and corporate development, highlighted by his co-founding of Kinetrix and tenure at Teradyne. This addition expands Celestica’s board to 10 members, aiming to leverage Müller's expertise for enhancing company strategy and operations.
Celestica Inc. has officially opened its new AbelConn Electronics facility in Maple Grove, Minnesota, enhancing its manufacturing capabilities for the defense and aerospace sectors. The 110,000 square foot facility will support rapid prototyping, volume manufacturing, and engineering services, particularly focusing on ITAR-certified production and obtaining ISO 13485 certification for HealthTech markets. This expansion is part of Celestica's growth strategy, aiming to improve speed-to-market and regulatory compliance for its customers in highly regulated industries.
On July 26, 2021, Celestica Inc. (TSX: CLS) reported Q2 2021 results, highlighting revenue of $1.42 billion, a 5% decrease from Q2 2020. However, non-IFRS adjusted EPS reached $0.30, up from $0.25 a year prior. The company noted continued improvement in non-IFRS operating margin, achieving 3.9%, compared to 3.4% in Q2 2020. The ATS segment experienced a 12% revenue increase, but the CCS segment saw a 14% decline. The guidance for Q3 suggests a non-IFRS operating margin of 4.0%, potentially the highest in two decades, reflecting strong momentum in Lifecycle Solutions.