TORONTO -- Celestica reported third-quarter profits rose 35% year-over-year, but the world's fourth largest contract assembler said visibility in the current quarter is waning.

For the period ended Sept. 30, revenue climbed to 18% to $1.83 billion. Adjusted net earnings (net earnings before stock-based compensation, amortization of intangible assets, restructuring and other charges) were $57.4 million, up from $42.5 million last year. Operating margin for the period was 3.7%, and Celestica expressed confidence it would remain steady over the next quarter. Revenue was flat sequentially.

The results were within previous company guidance.

Server demand fell 18% from the second quarter, while telecom (-10%) and storage (-4%) were also down. Diversified markets, which includes industrial, medical, aerospace, was up 26% sequentially, and is expected to grow another 10% in the coming quarter.

Celestica said the impact to its operations due to Thailand's recent floods were minimal, and the company expects nominal impact to the supply chain in the short term.

Year to date, revenue is up 17.4% to $5.46 billion. Adjusted net earnings are up 25% to $170.8 million.

"Celestica delivered solid results in the third quarter with strong margin, earnings and cash performance," said Craig Muhlhauser, president and chief executive officer, Celestica. "The global economic environment is driving volatility in demand and visibility is limited."

Celestica guided for fourth-quarter revenue of $1.70 billion to $1.85 billion. It expects most end-markets to be down during the quarter based on lower customer forecasts. On a conference call with analysts Oct. 20, the EMS provider said telecom, servers, consumer, and enterprise systems would be most affected.

A Canadian company. Celestica is required to transition to IFRS, while its major North American competitors report financial results under US GAAP. IFRS did not significantly impact the company's non-IFRS financial metrics, which the company presents to enable investors to compare Celestica's financial results with those of its major North American peer group.

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