Celestica Inc. Reports Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2012; Provides Earnings Guidance for the First Quarter Ending March 31, 2013; Provides Adjusted Tax Rate Guidance for the Full Year of 2013; Announces Non-Cash Impairment Charges for the Fourth Quarter Ended December 31, 2012
January 22, 2013 at 09:00 pm
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Celestica Inc. reported earnings results for the fourth quarter and full year ended December 31, 2012. For the fourth quarter, the company reported revenue of $1.5 billion came in higher than the midpoint of its guidance range, declined 5% sequentially and was down 15% on a year-over-year basis, predominantly as a result of the wind down of RIM. Adjusted net earnings was $50.3 million or $0.25 per share compared to adjusted net earnings of $71.1 million or $0.33 per share for the same period last year. IFRS net earnings of $7.2 million or $0.04 per share compared with IFRS net earnings of $69.2 million or $0.32 per share for the same period last year. The company generated strong free cash flow of $90 million. Capital expenditures were approximately $17 million or 1.2% of revenue. The company generated $105 million in cash from operations for the fourth quarter. IFRS earnings before income taxes were $2.2 million against $54.2 million reported last year. Non-IFRS operating earnings (EBIAT) were $47.0 million against $66.8 million reported last year. IFRS cash provided by operations was $104.6 million against $96.8 million and purchase of property, plant and equipment, net of sales proceeds was $13.4 million against $6.8 million reported last year. Earnings from operations were $3.2 million compared to $55.3 million last year. Purchase of computer software and property, plant and equipment was $17.3 million compared to $14.8 million last year.
For the year, the company reported revenue of $6.5 billion was down 10% compared to $7.2 billion reported in the year 2011, primarily due to the wind down of RIM. IFRS net earnings were $118 million or $0.56 per share against $195.1 million or $0.89 per share reported last year. The company achieved ROIC of 21.5%, which came in above its 20% objective. The company generated strong free cash flow of $211 million for the year, above its annual target range of $100 million to $200 million. Adjusted net earnings (non-IFRS) were $205.8 million or $0.98 per share against $241.9 million or $1.11 per share reported last year. IFRS earnings before income taxes were $111.9 million against $198.8 million reported last year. Non-IFRS operating earnings (EBIAT) were $214.6 million against $261.1 million reported last year. IFRS cash provided by operations was $312.4 million against $196.3 million and purchase of property, plant and equipment, net of sales proceeds was $45.2 million against $13.4 million reported last year. Earnings from operations were $115.4 million compared to $204.2 million last year. Purchase of computer software and property, plant and equipment was $105.9 million compared to $62.3 million last year.
For the first quarter of 2013, the company anticipates revenue to be in the range of $1.325 to $1.425 billion, and adjusted net earnings per share to be in the range of $0.11 to $0.17. The company expect a negative $0.07 to $0.13 per share (pre-tax) aggregate impact on an IFRS basis for the following items: stock-based compensation, amortization of intangible assets and restructuring charges.
For the full year of 2013, the company expected adjusted tax rate to be in the 10% to 12%.
For the fourth quarter, the company recorded a $17.7 million of non-cash asset impairment charges, comprised of $14.6 against goodwill, $0.7 against intangible assets and $2.4 against property, plant and equipment.
Celestica Inc. is engaged in designing, manufacturing, hardware platform and supply chain solutions. The Company operates in two segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). The ATS segment consists of its ATS end market and is comprised of its Aerospace & Defense (A&D), Industrial, HealthTech, and Capital Equipment businesses. Its Capital Equipment business is comprised of its semiconductor, display, and robotics equipment businesses. The CCS segment consists of its communications and enterprise end markets. The enterprise end market is comprised of Celesticaâs servers and storage businesses. It offers a range of product manufacturing and related supply chain services to customers in both of its segments, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, complex mechanical assembly, systems integration, precision machining and others.
Celestica Inc. Reports Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2012; Provides Earnings Guidance for the First Quarter Ending March 31, 2013; Provides Adjusted Tax Rate Guidance for the Full Year of 2013; Announces Non-Cash Impairment Charges for the Fourth Quarter Ended December 31, 2012