Welcome to our dedicated page for Celestica news (Ticker: CLS), a resource for investors and traders seeking the latest updates and insights on Celestica stock.
Celestica, Inc. (CLS) is a prominent player in the realm of design, manufacturing, hardware platform, and supply chain solutions, catering to some of the world's most innovative enterprises. Established as a trusted partner, Celestica delivers end-to-end product lifecycle solutions that propel customer success through a streamlined global operations network and robust IT platform.
With an unwavering commitment to providing a distinctive customer experience, Celestica’s agile workforce is renowned for their expertise and creativity, enabling clients to overcome diverse challenges. The company's core operations are divided into two main segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS).
- Advanced Technology Solutions (ATS): This division includes Aerospace and Defense, Industrial, HealthTech, and Capital Equipment businesses. The Capital Equipment business encompasses the Semiconductor, Display, and Robotics sectors.
- Connectivity & Cloud Solutions (CCS): This segment is focused on Communications and Enterprise end markets, which include servers and storage solutions. Notably, the CCS segment contributes the majority of Celestica's revenue.
In recent developments, Celestica has expanded its portfolio by launching four new networking switches catering to enterprises' performance and connectivity needs. These switches support SONiC (Software for Open Networking in the Cloud) and boast features such as concurrent Wi-Fi connectivity and 5G LTE for WAN backhaul, making them reliable, scalable solutions aligned with the Open Compute Project (OCP) standards.
Financially, Celestica has been active in managing its share repurchase programs. Over recent periods, the company has made significant payments to repurchase subordinate voting shares (SVS) for both cancellation and delivery obligations under their SBC plans.
For more detailed information about Celestica, their offerings, and the latest updates, visit www.celestica.com.
Celestica Inc. (NYSE: CLS) has enhanced its credit facility, increasing its borrowing capacity with favorable terms. The company now has $660.4 million in term loans outstanding, up from $440.4 million as of September 30, 2021. Key amendments include a new term loan of $365 million, an increase in the Revolver commitments from $450 million to $600 million, and an extension of maturity dates. Proceeds from the new term loan were used to repay previous debts, ensuring improved financial flexibility.
Celestica announced its acceptance by the Toronto Stock Exchange to launch a Normal Course Issuer Bid aimed at repurchasing up to 8,987,310 subordinate voting shares from December 6, 2021, to December 5, 2022. This number represents approximately 10% of the company's public float. The repurchase will be funded by cash resources and a credit facility, with shares to be canceled post-purchase. Previously, Celestica repurchased 4,377,739 shares at an average price of US$8.21 under an expired bid.
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.
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.
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