UPDATE 1-Celestica's sees margin pressure in 2013

Tue Oct 23, 2012 6:53pm EDT
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* Sees fourth-quarter revenue $1.43-$1.53 bln

* Sees oper margins 2 pct to 2.5 pct in first half of 2013

* To buy back $175 million in shares in fourth quarter

* Third-quarter revenue $1.58 mln vs est $1.65 bln

Oct 23 (Reuters) - Contract electronics manufacturer Celestica Inc's reported a 13 percent lower third-quarter profit on weaker demand across its segments and said it expects margins to come under pressure in the first half of 2013.

The company said it expects operating margins to be in the range of 2 percent to 2.5 percent for the period.

"This was a bit of a surprise for the market as that would imply a sequential drop from the roughly 3 percent (operating margin) they are guiding to for the fourth quarter," Paradigm Capital Inc analyst Gabriel Leung said.

The company said based on current customer forecasts and overall uncertainty in its end markets, it anticipates the first half of 2013 to remain challenging with continuing downward margin pressures.

Celestica forecast an adjusted fourth-quarter profit of 15 cents per share to 21 cents per share and revenue of $1.43 billion to $1.53 billion.   Continued...