Mr. Craig Muhlhauser reports
CELESTICA ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2011 FINANCIAL RESULTS
Celestica Inc. has released its financial results for the fourth quarter and fiscal year
ended Dec. 31, 2011.
"Celestica continued to deliver strong operating results in the fourth
quarter, despite the volatility in customer demand," said Craig
Muhlhauser, president and chief executive officer, Celestica. "With a continued focus on
operational effectiveness and revenue diversification, Celestica
delivered solid revenue and earnings growth and strong return on
invested capital in 2011, finishing the year with the best net cash
position among our major North American competitors.
"Given the economic uncertainty going into 2012, we remain focused on
making our customers successful by delivering the quality, speed and
flexibility they require in this challenging environment while
continuing to execute our strategy and deliver strong and consistent
financial returns."
FOURTH QUARTER AND FISCAL YEAR 2011 SUMMARY
Three months ended Dec. 31 Fiscal year ended Dec. 31
2010 2011 2010 2011
Revenue (in millions) $1,876.1 $1,753.4 $6,526.1 $7,213.0
IFRS net earnings (in millions) $38.4 $69.2 $101.2 $195.1
IFRS EPS(i) $0.17 $0.32 $0.44 $0.89
Adjusted net earnings (non-IFRS) (in millions) (ii) $61.3 $71.1 $197.7 $241.9
Adjusted net EPS (non-IFRS)(i) (ii) $0.27 $0.33 $0.86 $1.11
Non-IFRS return on invested capital(ii) 32.0% 27.5% 27.2% 27.5%
Non-IFRS operating margin(ii) 3.5% 3.8% 3.4% 3.6%
i. IFRS (international financial reporting standards) net earnings for the fourth quarter of 2011 included
a total charge of eight cents (pretax) per share for the following recurring items: stock-based compensation,
amortization of intangible assets (excluding computer software) and restructuring charges. This total
(pretax) charge was slightly above the range provided on Oct. 20, 2011, of between four cents and seven
cents per share, primarily due to higher than expected restructuring charges. Included in the fourth quarter
of 2011 adjusted net EPS (non-IFRS) of 33 cents is an income tax benefit of five cents per share arising
from settlement of tax audits.
ii. Non-IFRS measures do not have any standardized meaning prescribed by IFRS and are not necessarily comparable
to similar measures presented by other companies using IFRS and other generally accepted accounting principles
(GAAP). See schedule 1 for non-IFRS definitions and a reconciliation of non-IFRS to IFRS measures.
Fiscal year 2011 highlights
- Revenue -- $7.2-billion, up 11 per cent from prior year;
- IFRS EPS -- 89 cents per share, up 102 per cent from prior year;
-
Adjusted net EPS (non-IFRS) -- $1.11 per share, up 29 per cent from prior year;
-
Free cash flow (non-IFRS) -- $144-million, up 36 per cent from prior year;
-
Diversified end markets -- 14 per cent of total revenue, up from 12 per cent of total
revenue in prior year.
Fourth quarter 2011 highlights
-
Revenue -- $1.75 billion, in line with guidance of $1.7-billion to $1.85-billion
(announced Oct. 20, 2011);
- IFRS EPS -- 32 cents per share, up 88 per cent from prior year;
- Adjusted net EPS (non-IFRS) -- 33 cents per share, compared to guidance of
23 cents to 29 cents (announced Oct. 20, 2011; guidance did not include five cents per share of income tax benefit arising from settlement of tax
audits);
-
Free cash flow (non-IFRS) -- $89-million, up 191 per cent from prior year;
-
Diversified end markets -- 18 per cent of total revenue, up from 11 per cent of total revenue in prior year.
END MARKETS BY QUARTER
2010 2011
Q1 Q2 Q3 Q4 FY* Q1 Q2 Q3 Q4 FY
Consumer 28% 26% 24% 24% 25% 26% 25% 25% 26% 25%
Diversified(iii) 10% 11% 12% 11% 12% 11% 13% 16% 18% 14%
Enterprise communications 22% 24% 25% 24% 24% 25% 25% 26% 25% 26%
Servers 12% 14% 13% 17% 14% 15% 17% 14% 13% 15%
Storage 14% 12% 12% 12% 12% 12% 11% 11% 10% 11%
Telecommunications 14% 13% 14% 12% 13% 11% 9% 8% 8% 9%
Revenue (in billions) $1.52 $1.59 $1.55 $1.88 $6.53 $1.80 $1.83 $1.83 $1.75 $7.21
(iii) The company's diversified end market comprises industrial, aerospace and defence, health care, green technology
and other.
* FY is full year.
Celestica announced expected launch of share repurchase plan
Celestica has announced its expectation to file with the Toronto Stock
Exchange (TSX), a notice of intention to commence a new normal course
issuer bid (NCIB). Subject to the acceptance of the notice by the TSX,
the company expects to repurchase, at its discretion during the
following 12 months, up to 10 per cent of the public float of its subordinate
voting shares.
First quarter 2012 outlook
For the first quarter ending March 31, 2012, the company anticipates
revenue to be in the range of $1.6-billion to $1.7-billion, and
adjusted net earnings per share to be in the range of 18 cents to 24 cents.
The company expects a negative five cents to seven cents per share (pretax)
total impact on an IFRS basis for the following recurring items:
stock-based compensation and amortization of intangible assets
(excluding computer software).
Fourth quarter webcast
Management will host its fourth quarter results conference call today at
4:30 p.m. Eastern Standard Time. The webcast can be accessed on Celestica's website.
IFRS reporting commenced in 2011
Celestica has reported its financial results in accordance with
international financial reporting standards, as required for
public companies in Canada. The comparative financial information has
been restated to reflect the adoption of IFRS, with effect from Jan.
1, 2010. Periods prior to Jan. 1, 2010, will not be presented under
IFRS. The company has included a reconciliation between IFRS and the
amounts previously reported under Canadian GAAP in note 3 to the
attached unaudited financial statements. Although Celestica was
required to transition to IFRS, its major North American competitors
continue to report financial results under United States generally accepted accounting principles. IFRS did not
significantly impact the company's non-IFRS financial measures, which
the company presents to enable investors to compare Celestica's
financial results with those of its major North American competitors.
Supplementary information
In addition to disclosing detailed results in accordance with IFRS,
Celestica provides supplementary non-IFRS measures to consider in
evaluating the company's operating performance.
Management uses adjusted net earnings and other non-IFRS measures to
assess operating performance and the effective use and allocation of
resources, to provide more meaningful period-to-period comparisons of
operating results, to enhance investors' understanding of the core
operating results of Celestica's business, and to set management
incentive targets.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(in millions of U.S. dollars, unaudited)
Three months Year ended
ended Dec. 31 Dec. 31
2010 2011 2010 2011
Net earnings for the period $ 38.4 $ 69.2 $ 101.2 $ 195.1
Other comprehensive income (loss), net of tax
Actuarial gains (losses) on pension plans (28.3) 5.2 (28.3) 5.2
Currency translation differences for foreign operations (0.3) (3.7) 1.6 (1.7)
Change from derivatives designated as hedges (1.8) 1.0 1.8 (22.9)
Total comprehensive income for the period $ 8.0 $ 71.7 $ 76.3 175.7We seek Safe Harbor.
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