Electronics manufacturer Celestica Inc. says third-quarter earnings dropped 13 per cent on lower revenue as the company wrapped up manufacturing services for what was once its biggest customer, Research In Motion Ltd.
The Toronto-based global manufacturing company said profit fell to $43.7-million (U.S.), or 21 cents per share, from $50.2-million, or 23 cents per share, a year earlier.
Revenue fell to $1.58-billion from $1.83-billion, short of its own guidance for $1.7-billion in sales and analysts' expectations of $1.66-billion.
Still, the company's earnings managed to beat analysts' expectations as compiled by Thomson Reuters. Adjusted net earnings per share came in at 26 cents – 6 cents above the consensus estimate.
The earnings per share included a 5 cent per share gain due to a tax recovery.
However, Celestica also booked an $8.3-million restructuring charge during the quarter related to the wind down of manufacturing for RIM.
The company says it's working to reduce costs to respond to a challenging economic climate.
Celestica supplies components and equipment in the communications, computer, telecom aerospace, defence and other markets.
The company has been broadening its scope over the past two years to diversify revenue sources. In July, it acquired California-based D&H Manufacturing Co., a components manufacturer for semiconductor makers, for about $70-million.
However, Celestica has been affected by the winding down of manufacturing for RIM.
The manufacturer used to be a division of IBM Canada and was later sold to Onex Corp., one of Canada's largest investment companies with interests in aerospace, health-care and many industrial and services sectors.
Toronto-based Onex has a minority equity stake but majority voting rights in the company.