TORONTO - Contract electronics manufacturer Celestica Inc. (TSX:CLS) has reported an increase in third-quarter net earnings despite a decline in revenue as a result of last year's loss of its manufacturing contract with BlackBerry (TSX:BB).
Excluding the BlackBerry contract, Celestica says revenue would have increase five per cent as net earnings improved to US$57.4 million or 31 cents per share from $43.7 million or 21 cents in the prior-year period.
Revenue slumped to US$1.49 billion from more than US$1.57 billion in the 2012 quarter.
"Celestica delivered a solid third-quarter with revenue and adjusted EPS above the midpoint of our guidance range, driven by strong demand in our communications and storage end markets," president and CEO Craig Muhlhauser said Tuesday in an earnings release issued after markets closed.
"Through our relentless focus on operational excellence and continuous improvement, we have delivered sequential growth in our adjusted operating margin over the last two quarters and we are targeting further margin expansion in the fourth quarter, despite a challenging demand environment."
Muhlhauser said the company is continuing to win new business while remaining focused on reducing costs, a major push since the announced loss in 2012 of its contract with BlackBerry, then called Research in Motion, and once its biggest customer.
Celestica wrapped up manufacturing services for RIM as part of a decision by the struggling smartphone maker to cut supplier costs.
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