10-KPeriod: FY2013

CELESTICA INC Annual Report, Year Ended Dec 31, 2013

Filed March 14, 2014For Securities:CLS

Summary

Celestica Inc. reported a slight decrease in revenue for 2013, reaching $5.8 billion, down from $6.5 billion in 2012. This decline was primarily attributed to the company's disengagement from BlackBerry. Excluding BlackBerry revenue, the company's overall revenue saw a 1% increase year-over-year. Net earnings remained relatively flat at $118 million compared to $117.7 million in 2012. The company's gross margin remained stable at 6.7%, benefiting from an improved program mix and cost containment efforts. Celestica continues to focus on profitable growth, cost management, and strengthening customer relationships, particularly in its Diversified and Communications end markets, which represented a significant portion of its revenue in 2013. The company ended the year with a strong balance sheet, including $544.3 million in cash and cash equivalents.

Key Highlights

  • 1Revenue declined 11% to $5.8 billion in 2013, primarily due to the BlackBerry disengagement, though organic revenue excluding BlackBerry increased by 1%.
  • 2Net earnings were stable at $118 million in 2013, with diluted EPS of $0.64.
  • 3Gross margin remained steady at 6.7% due to a favorable program mix and cost containment.
  • 4The company completed restructuring actions initiated in 2012, incurring charges of $28 million in 2013.
  • 5Cash and cash equivalents stood at $544.3 million at year-end 2013.
  • 6Celestica continues to prioritize profitable growth, operational efficiency, and strengthening customer relationships across its key end markets.
  • 7The company's top 10 customers accounted for 65% of revenue, highlighting significant customer concentration.

Frequently Asked Questions

Celestica's revenue for 2013 was $5.8 billion, a decrease of 11% from $6.5 billion in 2012. This decrease was largely due to the company's disengagement from BlackBerry. Excluding BlackBerry's revenue, the company's revenue increased by 1% compared to 2012.

Celestica reported net earnings of $118 million for 2013, which was relatively flat compared to $117.7 million in 2012. Diluted earnings per share were $0.64. The gross margin remained stable at 6.7%, supported by an improved program mix and ongoing cost control measures.

Celestica highlighted several key risks, including dependence on a limited number of customers, aggressive pricing dynamics in the EMS industry, managing operations during uncertain economic conditions, and susceptibility to rapid technological changes in its customers' markets. Additionally, the company faces risks related to global operational disruptions and supply chain management.

Celestica's strategic priorities include achieving profitable growth in targeted business areas, continuous improvement in financial results, building long-term profitable relationships with leading customers, and strengthening capabilities in design, engineering, process technologies, and other service offerings to expand beyond traditional EMS. The company also selectively pursues strategic acquisitions.