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Strong demand buoys Celestica profit

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Contract electronics manufacturer Celestica Inc. (CLS-T) reported an 18-percent rise in fourth-quarter adjusted quarterly profit, helped by strength across most of its segments.

The Toronto-based company, whose biggest customer is BlackBerry-maker Research In Motion (RIM-T), expects to post adjusted earnings of 20-26 cents US a share in the first quarter, on revenue of $1.73-$1.88 billion.

Analysts on average were expecting earnings of 20 cents a share, before items, on revenue of $1.65 billion, according to Thomson Reuters I/B/E/S.

Celestica, however, expects first-quarter pre-tax profit to be hurt by 7-11 cents a share due to conversion to International Financial Reporting Standards.

The company, one of the five largest contract electronics manufacturers globally, provided robust 2011 guidance last quarter, saying revenue should grow 10-15 percent as it fills server and smartphone contracts and sees strong orders in its industrial, aerospace and defense unit.

Fourth-quarter adjusted profit was $58.3 million, or 26 cents a share, compared with $49.5 million, or 21 cents a share, a year ago.

Revenue came in at $1.88 billion, with RIM accounting for 20 percent of total revenue.

Analysts had expected earnings of 23 cents a share, on revenue of $1.77 billion.

Celestica, which was spun off from IBM (IBM-N) in 1996, has factories across the world, including in China, Malaysia, Thailand, Mexico and Europe. IBM and Cisco (CSCO-Q) are also major customers.

CTV.ca CTV Two CTV News CTV News Channel BNN - Business News Network CP24