TORONTO, Dec. 02, 2020 (GLOBE NEWSWIRE) -- Celestica Inc. (NYSE: CLS)(TSX: CLS), a leader in design, manufacturing and supply chain solutions for the world's most innovative companies, will host an analyst and investor meeting today to provide an update on its Joint Design and Manufacturing (JDM) business. Celestica has been investing in its JDM business for the last 10 years.
Today, the JDM business has over 500 design engineers, over 280 patents, launched over 150 programs and shipped over 2.5 million units.
Celestica today also reaffirmed its fourth quarter of 2020 revenue and non-IFRS adjusted earnings per share* financial guidance, and updated near-term expectations** as follows:
2020 JDM revenue is expected to exceed $800 million, up over 80% compared to 2019; JDM revenue is expected to continue to grow in 2021, albeit at a lower rate As anticipated, non-JDM Connectivity & Cloud Solutions (CCS) segment revenue† is expected to decline in 2021 compared to 2020 primarily due to the disengagement from programs with Cisco Systems, Inc. (Cisco Disengagement)
Advanced Technology Solutions (ATS) segment revenue† is targeted to grow 10% in 2021 compared to 2020
ATS segment margin† is expected to be within its target range of 5% to 6% by the end of 2021
CCS segment margin† is expected to be within its target range of 2% to 3% in 2021
Celestica is on track to generate at least $100 million of non-IFRS free cash flow* in 2020; also expecting to achieve this goal in 2021
Over 50 potential M&A targets reviewed in 2020 through defined investment filter; intend to continue to assess M&A transactions against alternative uses of cash
Intention in the near term is to repurchase shares under recently-announced share buy-back program if trading price below tangible book value
Celestica’s management will discuss these updates and provide an update on its JDM business on its previously-announced analyst and investor meeting today at 4:00pm ET. To participate in the meeting in listen-only mode, please dial (647) 788-4919 or 1 (877) 291-4570. To ensure your participation, please call in approximately ten minutes prior to the scheduled start of the call. Analysts will have the opportunity for a Q&A with speakers following the formal remarks. A webcast is also available at: https://onlinexperiences.com/Launch/QReg/ShowUUID=D17311B8-8E5F-460E-A143-D9B5E264D255.
A recorded webcast will be available approximately two hours after completion of the call, and will be available for 12 months thereafter. To access the recorded webcast visit www.celestica.com.
* Non-IFRS (International Financial Reporting Standards) measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public companies that use IFRS or U.S. generally accepted accounting principles (GAAP). See “Non-IFRS Measures” below.
** Subject in all cases to the risks set forth in the Cautionary Note Regarding Forward-Looking Statements below, including the impact of COVID-19.
† Our CCS segment consists of our Communications and Enterprise (servers and storage) end markets. Our ATS segment consists of our ATS end market, and is comprised of our aerospace and defense (A&D), industrial, energy, HealthTech and capital equipment (semiconductor, display, and power & signal distribution equipment) businesses. Segment performance is evaluated based on segment revenue, segment income and segment margin (segment income as a percentage of segment revenue). See note 25 to our 2019 audited consolidated financial statements for further detail.
Celestica enables the world's best brands. Through our recognized customer-centric approach, we partner with leading companies in aerospace and defense, communications, enterprise, HealthTech, industrial, capital equipment, and energy to deliver solutions for their most complex challenges. As a leader in design, manufacturing, hardware platform and supply chain solutions, Celestica brings global expertise and insight at every stage of product development - from the drawing board to full-scale production and after-market services. With talented teams across North America, Europe and Asia, we imagine, develop and deliver a better future with our customers.
For more information, visit www.celestica.com.