TORONTO – Celestica Inc. (TSX:CLS) saw its profit rise by 46 per cent to US$40.9 million in the second quarter, largely on strong demand for its communication equipment customers.
The Toronto-based company, which provides global electronic manufacturing services to companies in several industry sectors, said its earnings amounted to 22 cents per dilluted share under standard accounting. This compared to a profit of $28 million, or 15 cents per dilluted share, in the same period a year earlier.
The earnings, which Celestica reports in U.S. currency, missed analyst expectations by a penny, according to a poll by Thomson Reuters.
Revenue climbed to $1.471 billion for the three-month period ended June 30, compared with $1.495 billion a year ago.
Celestica president and CEO, Craig Muhlhauser, said revenue growth came in at the higher end of the company’s guidance.
“As a result of our revenue growth, strong operational performance and focus on continuous improvement, we achieved sequential improvements in operating margin, inventory turnover and free cash flow generation,” he said in a statement.
“As we look to the future, we remain confident in our strategy and ability to further accelerate our progress by leveraging our strong foundation of innovation and operational excellence through continued investments in people, capabilities, and technologies that will enable our customers’ success.”
Celestica said Thursday it estimates its third-quarter revenue will be in a range between US$1.4 billion and $1.50 billion and adjusted profit of between 21 and 27 cents per share.