Celestica Narrows Q4 Loss, Ups Restructuring Efforts PDF Print E-mail
Written by Mike Buetow   
Friday, 01 February 2008 08:48
TORONTO – Celestica Inc. reported fourth quarter revenue slipped 2% from last year to $2.2 billion. The EMS firm’s net loss shrunk to $11.7 million, from $60.8 million for the quarter ended Dec. 31.

During the quarter, Celestica took restructuring charges of $24 million, down from $59 million last year. The net loss included a non-cash writedown of long-lived assets of $15 million.

Although sales were down, the firm exceeded its Oct. 25 fourth quarter guidance of $2 billion to $2.15 billion.

For the year, the net loss narrowed to $13.7 million (from $151 million) on an 8% drop in revenue to $8.1 billion.

“We are pleased with the strong results our company delivered in the fourth quarter,” said president and chief executive Craig Muhlhauser, in a statement. "Since implementing our turnaround plans 12 months ago, we have undergone a major transformation, which has resulted in our best ever and industry leading inventory turns, strong margin recovery and an improving trend in returns on invested capital.”

Celestica guided for March quarter revenues of $1.7 billion to $1.9 billion, with seasonality impacts expected in communications, information technology and consumer end markets.

The company said its restructuring charges will increase $50 million to $75 million during 2008 in order to further reduce fixed costs and overhead expenses.

The company’s operating losses in its operations in Mexico improved sequentially to $4 million, from $10 million, and in Europe to $7 million, from $10 million.

Most of the restructuring charges will be taken in the second half, with expectations focused on Europe and some potential cuts in the Americas.
 
Last Updated on Friday, 01 February 2008 08:53
 

Columns

Eastern-US: China’s New Competitor?

Parity emerges among EMS Factories from Asia, Mexico and the US.

For the first time in years we see parity in the Eastern US among EMS factories from Asia, Mexico and the US. This EMS market condition will permit American OEMs (the EMS industry refers to OEMs as customers) to have more EMS pathways to choose from. Now more than ever, such EMS assignments will require deeper investigation relating to the OEMs’ evaluation of manufacturing strategies.

Read more...
 
The Human Touch

For those who count on the electronics industry for big feats, it’s been a remarkable couple of years.

Read more...
 

Features

Advances in Concentration Monitoring and Closed-Loop Control

Contaminated bath water skews refractive index results. New technology can accurately measure aqueous cleaning agent concentration.

Read more...
 
Circuits Disassembly: Materials Characterization and Failure Analysis

A systematic approach to nonconventional methods of encapsulant removal.

Read more...
 

Search

Search

Login

CB Login

Language

Language

English French German Italian Portuguese Russian Spanish
 

Products

Techspray Introduces Fine-L-Kote High Viscosity AR Conformal Coating
Fine-L-Kote high viscosity AR acrylic conformal coating reportedly widens the process window and flexibility. Can use as-is for dipping or thin down for spray systems. Is for selective spray systems...