Celestica Announces Second Quarter 2016 Financial Results

(in millions of U.S. dollars, except percentages and per share amounts)
(unaudited)

1. REPORTING ENTITY

Celestica Inc. (Celestica) is incorporated in Canada with its corporate headquarters located at 844 Don Mills Road, Toronto, Ontario, M3C 1V7. Celestica's subordinate voting shares are listed on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE).

Celestica delivers innovative supply chain solutions globally to customers in the Communications (comprised of enterprise communications and telecommunications), Consumer, Diversified (comprised of aerospace and defense, industrial, healthcare, energy, and semiconductor equipment), Servers, and Storage end markets. Our product lifecycle offerings include a range of services to our customers including design and development, engineering services, supply chain management, new product introduction, component sourcing, electronics manufacturing, assembly and test, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics and after-market repair and return services.

2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

Statement of compliance:

These unaudited interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting, as issued by the International Accounting Standards Board (IASB) and the accounting policies we have adopted in accordance with International Financial Reporting Standards (IFRS). These unaudited interim condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary to present fairly our financial position as at June 30, 2016 and our financial performance, comprehensive income and cash flows for the three and six months ended June 30, 2016.

These unaudited interim condensed consolidated financial statements were authorized for issuance by our board of directors on July 21, 2016.

Functional and presentation currency:

These unaudited interim condensed consolidated financial statements are presented in U.S. dollars, which is also our functional currency. Unless otherwise noted, all financial information is presented in millions of U.S. dollars (except percentages and per share amounts).

Use of estimates and judgments:

The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, revenue and expenses, and the related disclosures of contingent assets and liabilities. Actual results could differ materially from these estimates and assumptions. We review our estimates and underlying assumptions on an ongoing basis and make revisions as determined necessary by management. Revisions are recognized in the period in which the estimates are revised and may impact future periods as well.

Key sources of estimation uncertainty and judgment: We have applied significant estimates and assumptions in the following areas which we believe could have a significant impact on our reported results and financial position: our valuations of inventory, assets held for sale and income taxes; the amount of our restructuring charges or recoveries; the measurement of the recoverable amounts of our cash generating units (CGUs, as defined below), which includes estimating future growth, profitability, and discount rates, and the fair value of our real property; our valuations of financial assets and liabilities, pension and non-pension post-employment benefit costs, employee stock-based compensation expense, provisions and contingencies; and the allocation of the purchase price and other valuations related to our business acquisitions.

We define a CGU as the smallest identifiable group of assets that cannot be tested individually and that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. CGUs can be comprised of a single site, a group of sites, or a line of business.

We have also applied significant judgment in the following areas: the determination of our CGUs and whether events or changes in circumstances during the period are indicators that a review for impairment should be conducted, and the timing of the recognition of charges or recoveries associated with our restructuring actions.

These unaudited interim condensed consolidated financial statements are based upon accounting policies and estimates consistent with those used and described in note 2 of our 2015 annual audited consolidated financial statements. There have been no material changes to our significant accounting estimates and assumptions or the judgments affecting the application of such estimates and assumptions during the second quarter of 2016 from those described in the notes to our 2015 annual audited consolidated financial statements. The near-term economic environment could also impact certain estimates necessary to prepare our consolidated financial statements, in particular, the estimates related to the recoverable amounts used in our impairment testing of our non-financial assets, and the discount rates applied to our net pension and non-pension post-employment benefit assets or liabilities.

3. SEGMENT AND CUSTOMER REPORTING

End markets:

The following table indicates revenue by end market as a percentage of total revenue for the periods indicated. Our revenue fluctuates from period-to-period depending on numerous factors, including but not limited to: the mix and complexity of the products or services we provide, the extent, timing and rate of new program wins, and the execution of our programs and services, follow-on business, program completions or losses, the phasing in or out of programs, the success in the marketplace of our customers' products, changes in customer demand, and the seasonality of our business. We expect that the pace of technological change, the frequency of customers transferring business among EMS competitors, the level of outsourcing by customers (including decisions to insource), and the dynamics of the global economy will also continue to impact our business from period-to-period.

                                                                            
                                     Three months ended   Six months ended  
                                           June 30             June 30      
                                     ------------------- -------------------
                                       2015      2016      2015      2016   
                                     --------- --------- --------- ---------
Communications                             40%       41%       40%       40%
Consumer                                    3%        3%        3%        3%
Diversified                                28%       30%       28%       32%
Servers                                           10%                9%              10%                9%
Storage                                                                        19%              17%              19%              16%
                                                                                                                                                        
 

Customers:

For the second quarter and first half of 2016, we had two customers that individually represented more than 10% of total revenue (second quarter and first half of 2015 -- three customers).

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8  Next Page »

Reviews:
Review Article
  • Cryptocurrency May 18, 2021
    Reviewed by 'jason tech'
    You might have been trying some models of trading. As model selection would be an amazing way to make a difference. Even a book, for itself, you will only provide some rough guidelines in the form of questions and algorithmic trading. This is the very approach which you’ll need to ask yourself when deciding which model to apply.

      Was this review helpful to you?   (Report this review as inappropriate)


For more discussions, follow this link …
SolidCAM - Learn More

Featured Video
Editorial
Latest Blog Posts
Sanjay GangalMCADCafe Lens
by Sanjay Gangal
NVIDIA GTC October 2020 Keynote
Jobs
Product Design Engineer - Softgoods for Apple Inc at Cupertino, California
Service Software Expert-CATIA & CAA for Dassault Systemes at Shanghai, China
Director, Industrial Machinery Solutions- SISW PLM for Siemens AG at Livonia, Michigan
Senior Highway Engineer for RS&H at Jacksonville, Florida
Technical Sales Representative for Rulon International at Saint Augustine, Florida
GIS Analyst for Union County NC at Monroe, California
Upcoming Events
PLM Road Map & PDT Spring 2021 at 3909 Research Park Drive Ann Arbor MI - May 19 - 20, 2021
TCT ASIA 2021 at National Exhibition and Convention Centre(NECC) Shanghai China - May 26 - 28, 2021
Aerospace 3D Printing Conference at Netherlands - Jun 8, 2021
RAPID + TCT at McCormick Place Chicago IL - Sep 13 - 15, 2021
Kenesto: 30 day trial
MasterCAM



© 2021 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise