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. (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.
Celestica Inc. has officially opened its new AbelConn Electronics facility in Maple Grove, Minnesota, enhancing its manufacturing capabilities for the defense and aerospace sectors. The 110,000 square foot facility will support rapid prototyping, volume manufacturing, and engineering services, particularly focusing on ITAR-certified production and obtaining ISO 13485 certification for HealthTech markets. This expansion is part of Celestica's growth strategy, aiming to improve speed-to-market and regulatory compliance for its customers in highly regulated industries.
On July 26, 2021, Celestica Inc. (TSX: CLS) reported Q2 2021 results, highlighting revenue of $1.42 billion, a 5% decrease from Q2 2020. However, non-IFRS adjusted EPS reached $0.30, up from $0.25 a year prior. The company noted continued improvement in non-IFRS operating margin, achieving 3.9%, compared to 3.4% in Q2 2020. The ATS segment experienced a 12% revenue increase, but the CCS segment saw a 14% decline. The guidance for Q3 suggests a non-IFRS operating margin of 4.0%, potentially the highest in two decades, reflecting strong momentum in Lifecycle Solutions.
Celestica has been ranked 5th among Canada’s best corporate citizens in 2021 by Corporate Knights, which recognizes sustainability performance. The ranking evaluates 271 Canadian companies based on 24 key performance indicators in environmental, social, and governance (ESG) areas. Celestica's sustainability efforts align with the United Nations' Sustainable Development Goals and have received approval from the Science Based Targets initiative for greenhouse gas emissions reduction goals. The company aims to leverage its resources to support customer sustainability initiatives.
Celestica (NYSE: CLS) hosted a virtual investor roundtable on June 3, 2021, providing updates on its Capital Equipment business. The company expects revenues to exceed $700 million in 2021, reflecting over 30% growth from 2020, with margins anticipated at the high end of its target range. Analysts predict the Wafer Fabrication Equipment (WFE) market will reach $86 billion by 2024 with a 9% CAGR. Additionally, Celestica is exploring adjacent markets including robotics and automated systems, aiming to diversify its offerings.
Celestica Inc. (NYSE: CLS) will hold an analyst and investor meeting on June 3 at 4:00 PM ET, focusing on its Capital Equipment business. The company reaffirmed its guidance for Q2 2021, which was originally issued on April 28, 2021. Participants can join in listen-only mode via telephone or watch a webcast. A recorded version will be available for 12 months post-meeting. Celestica specializes in design, manufacturing, and supply chain solutions across various industries, emphasizing a customer-centric approach.
Celestica Inc. (CLS) reported Q1 2021 financial results, showing revenue of $1.23 billion, a 6% decrease from Q1 2020. However, non-IFRS adjusted EPS increased to $0.22, up from $0.16 year-over-year. The ATS segment revenue fell by 3%, while the CCS segment revenue decreased by 9%, largely due to disengagement from Cisco programs. Despite challenges from COVID-19, the company reduced debt, generated $20.9 million in free cash flow, and repurchased $5.3 million in shares. Guidance for Q2 2021 anticipates revenue of $1.325 to $1.425 billion.
On March 15, 2021, Celestica announced the filing of its annual report on Form 20-F for the fiscal year ending December 31, 2020, with the U.S. Securities and Exchange Commission. This report is accessible on the company's website and other regulatory sites. Shareholders can obtain a free copy by contacting the investor relations team. Celestica continues to deliver design, manufacturing, and supply chain solutions across multiple sectors, emphasizing its commitment to innovation and customer partnerships.
Celestica Inc. (NYSE, TSX: CLS) has announced its Annual Meeting of Shareholders will take place virtually on April 29, 2021, at 9:30 a.m. EDT, due to COVID-19 concerns. The record date for shareholders eligible to vote is set for March 12, 2021. Shareholders can expect to receive the proxy statement and related materials by late March. Celestica specializes in design, manufacturing, and supply chain solutions across various sectors, partnering with leading companies to tackle complex challenges.
Celestica reported Q4 2020 revenue of $1.4 billion, down 7% from Q4 2019, but exceeded guidance. Non-IFRS adjusted EPS was $0.26, a 44% increase year-over-year. The ATS segment saw a 12% revenue decline due to COVID-19, despite improved margins, while the CCS segment experienced a 4% decrease, impacted by disengagement from Cisco. The company ended 2020 with strong cash reserves and a $450 million credit line. Looking ahead, Q1 2021 guidance estimates revenue between $1.175 and $1.275 billion, with adjusted EPS expected in the range of $0.18 to $0.24.
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