REFILE-UPDATE 1-Contract manufacturer Celestica's profit narrowly beats

Thu Jan 30, 2014 6:34pm EST
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Jan 30 (Reuters) - Canadian contract electronics manufacturer Celestica Inc's quarterly profit narrowly beat analysts' average estimate due to a slight improvement in margins and a tax benefit.

Celestica, which has put the loss of contracts from struggling smartphone maker BlackBerry Ltd behind, said net income rose three-fold to $22.1 million, or 12 cents per share, in the fourth quarter.

In the year-earlier quarter, the company reported net income of $7.2 million, or 4 cents per share, hurt by a $17.7 million charge related to an acquisition.

The company earned 24 cents on an adjusted basis, which included a 2 cent tax gain.

Revenue fell 4 percent to $1.44 billion, mainly due to a drop in sales of servers.

Analysts on average had expected earnings of 23 cents per share on revenue of $1.47 billion, according to Thomson Reuters I/B/E/S.

The company, which competes with Plexus Corp and Benchmark Electronics, said operating margins improved to 3.3 percent from 3.1 percent.

Revenue from Celestica's communications business rose 6 percent.   Continued...