Celestica Q3 profit up despite loss of BlackBerry
Contract electronics manufacturer reports strong demand in communications, storage markets.
Celestica delivers a “solid” third quarter. Photo: Celestica
TORONTO — Contract electronics manufacturer Celestica Inc. has reported an increase in third-quarter net earnings despite a decline in revenue as a result of last year’s loss of its manufacturing contract with BlackBerry.
Excluding the BlackBerry contract, Celestica says revenue would have increase 5% as net earnings improved to US$57.4 million or 31 cents per share from $43.7 million or 21 cents in the prior-year period.
Revenue slumped to US$1.49 billion from more than US$1.57 billion in the 2012 quarter.
“Celestica delivered a solid third-quarter with revenue and adjusted EPS above the midpoint of our guidance range, driven by strong demand in our communications and storage end markets,” president and CEO Craig Muhlhauser said.
Muhlhauser said the company is continuing to win new business while remaining focused on reducing costs, a major push since the announced loss in 2012 of its contract with BlackBerry, then called Research in Motion, and once its biggest customer.
Celestica wrapped up manufacturing services for RIM as part of a decision by the struggling smartphone maker to cut supplier costs.
© 2013 The Canadian Press