Celestica (CLS) has disclosed a new risk, in the Costs category.
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Celestica faces significant business risks associated with the transfer of manufacturing operations between facilities, often necessitated by customer demands for cost or tariff reductions. Such transfers have historically led to increased costs due to facility downtime and suboptimal utilization of manufacturing capacity, alongside potential delays and complications in transitioning manufacturing programs. Additionally, these operational shifts could result in the closure or downsizing of facilities, incurring substantial costs related to closures, employee severance, and other related expenses, thereby impacting Celestica’s net income. The potential for future relocations or closures poses an ongoing risk to the company’s financial stability and customer service capabilities.
Overall, Wall Street has a Strong Buy consensus rating on CLS stock based on 12 Buys and 3 Holds.
To learn more about Celestica’s risk factors, click here.