Celestica Inc (NYSE: CLS) is a global leader when it comes to providing supply chain, manufacturing, and design solutions to some of the most innovative companies in the world, and it recently announced its financial results for Q2 F21.
Celestica’s Chief Executive Officer and President, Rob Mionis, said that the company’s strong Q2 results indicate how successful Celestica has been at executing its strategy to reshape its existing portfolio and create a diversified, resilient business that has a solid foundation for growth. Mainly driven by high HPS (Hardware Platform Solutions) concentration alongside solid performances of the company’s Capital Equipment business, Mr. Mioinis said they achieved Q2 F21 revenue that significantly exceeded their guidance ranges.
The CEO further stated that he was proud that the company’s global team could continue operating with agility to ensure successful navigation through industry headwinds and provide innovative solutions designed to allow customers to achieve their goals. He said that as they ramp up their new programs, he was confident they’re positioned well to build on their momentum, and that they’ll deliver significant growth in Q3 and Q4 of F21.
Key Highlights
The $1.42 billion revenue represented a 5% decrease from the $1.49 billion revenue reported in Q2 F20. However, non-Cisco business revenue increased by about 6% from the second quarter of the previous year. Had a 3.9% operating margin in Q2 F21, which was slightly higher than the 3.4% recorded in the second quarter of the previous year. Reported a 4.1% ATS segment margin in Q2 F21, which was a 12% increase compared to what was reported in the second quarter of the previous year, which was 3.1%.
The company has two reportable and operating segments: CCS (Connectivity and Cloud Solutions) and ATS (Advanced Technology Solutions). The ATS segment comprises the company’s ATS end market, which includes Capital, HealthTech, Industrial, and Aerospace and Defense Equipment. On the other hand, the CCS segment comprises mainly the company’s Communications & Enterprise end markets.