Celestica Q1 Revenue, Adj. Earnings Beat Estimates - Quick Facts

(RTTNews) - Celestica Inc. (CLS, CLS.TO) on Wednesday reported IFRS net loss for the first quarter of $3.2 million or $0.02 per share, compared to net income of $90.3 million or $0.66 per share in the year-ago period.

The year-ago quarter's results included a gain of $0.75 per share related to the company's Toronto property sale.

Non-IFRS adjusted net earnings for the quarter were $0.16 per share, compared to $0.12 per share in the prior-year quarter.

Revenue for the quarter declined 8 percent to $1.32 billion from $1.43 billion in the year-ago period.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.10 per share for the quarter on revenues of $1.22 billion. Analysts' estimates typically exclude special items.

Celestica noted that most of its operations have been deemed "essential services," and its global network is currently operating at approximately 80 percent to 85 percent of normal workforce levels.

The company said it originally intended to incur $30 million in restructuring charges in 2020, associated primarily with its Cisco Disengagement.

While the company currently estimates that charges in connection with its Cisco Disengagement will be lower than anticipated, it plans to take additional restructuring actions in 2020 to adjust its cost base in response to shifting demand.

As a result, Celestica expects restructuring costs in 2020 will exceed the $30 million originally anticipated. However, it is currently unable to estimate such amount. The company expects to substantially complete this restructuring program by the end of 2020.