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.
Overview of Celestica Inc.
Celestica Inc. (NYSE: CLS, TSX: CLS) is a globally recognized provider of end-to-end product lifecycle solutions, catering to some of the most innovative companies across diverse industries. With a commitment to delivering informed, flexible, and scalable solutions, Celestica empowers its customers to succeed in dynamic and competitive markets. The company operates through two primary segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS), each addressing specific market needs with tailored expertise and capabilities.
Business Segments and Core Operations
Advanced Technology Solutions (ATS): The ATS segment serves industries requiring high-precision and mission-critical solutions, including Aerospace and Defense, Industrial, HealthTech, and Capital Equipment. Within the Capital Equipment business, Celestica supports semiconductor, display, and robotics equipment markets, showcasing its ability to meet the demands of highly specialized sectors.
Connectivity & Cloud Solutions (CCS): The CCS segment focuses on Communications and Enterprise markets, providing essential hardware and supply chain solutions for servers, storage, and networking equipment. This segment represents a significant portion of Celestica's revenue, reflecting its strong position in the connectivity and cloud infrastructure space.
Value Proposition and Market Differentiation
Celestica's value proposition lies in its ability to offer comprehensive solutions that span the entire product lifecycle—from initial design and prototyping to full-scale production and after-market services. The company's global operations network and advanced IT platform enable it to deliver agile and adaptive solutions, ensuring that customers can respond effectively to evolving market demands. By leveraging its deep expertise, Celestica helps its partners overcome complex challenges, drive innovation, and achieve operational excellence.
Industry Context and Competitive Landscape
Operating at the intersection of technology, manufacturing, and supply chain management, Celestica is part of a highly competitive industry characterized by rapid technological advancements and evolving customer requirements. Its primary competitors include other global providers of design and manufacturing services, as well as niche players specializing in specific market segments. Celestica differentiates itself through its customer-centric approach, technical innovation, and ability to deliver tailored solutions across multiple industries.
Commitment to Innovation and Sustainability
Innovation is a cornerstone of Celestica's strategy. The company continuously invests in advanced technologies and solutions to help customers navigate the complexities of modern markets. For example, its portfolio of networking switches, including products supporting Software for Open Networking in the Cloud (SONiC), exemplifies its commitment to engineering excellence and adaptability. Additionally, Celestica adheres to sustainability principles, aligning its operations with environmental and social goals to create long-term value for stakeholders.
Global Reach and Expertise
With a presence across North America, Europe, and Asia, Celestica combines global expertise with local insights to serve a diverse customer base. Its talented teams bring a wealth of experience and creativity, enabling the company to deliver solutions that address both traditional and emerging market needs. This global footprint ensures that Celestica remains a trusted partner for companies seeking reliable and innovative solutions.
Conclusion
Celestica Inc. stands out as a vital enabler of innovation and operational efficiency for its customers. Through its diversified portfolio, global operations, and commitment to excellence, the company continues to play a pivotal role in shaping the future of technology and supply chain solutions. By addressing complex challenges with agility and expertise, Celestica reinforces its position as a trusted partner for leading brands worldwide.
Celestica Inc. (NYSE: CLS) announced it will host its fourth quarter 2021 financial results conference call on January 27, 2022, at 8:00 AM EST. Financial results will be released after market close on January 26, 2022.
The event will include a webcast accessible via Celestica's Investor Relations portal. An audio replay will be available post-call.
Celestica focuses on design, manufacturing, and supply chain solutions for sectors including Aerospace, Defense, and HealthTech.
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.
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