TORONTO -- Celestica president and chief executive Craig Muhlhauser will retire from the company by the end of 2015, he announced in a letter to the company's board. 

"It has been a privilege to serve as Celestica’s CEO,” said Muhlhauser. “Celestica has a strong leadership team and a talented and dedicated group of employees, and together we have significantly strengthened the company’s position in the EMS industry in the eyes of our customers, employees and shareholders. With this positive momentum, I believe it is a good time to begin the transition to new leadership, and I look forward to continuing in my role over the next year and working with the board to ensure a smooth transition.”  

Muhlhauser was named president of the EMS company in May 2005. At the time, the company had annual revenues of $8.84 million, down from a peak of $9.75 billion in 2000. The red ink was flowing: four straight years of losses, and the company had $750 million in long-term debt on the books. Muhlhauser was coming off a successful turnaround as president and CEO of Exide Technologies, and had significant executive experience in the automotive industry, a sector Celestica found appealing as it sought to diversify from its computer and communications network emphasis. 

On Muhlhauser's watch, the company has diversified, with some 29% of its sales now coming from automotive, semiconductor, defense, aerospace and medical products, up from 19% the quarter he took over. Moreover, he successfully managed the loss of the Blackberry business, which was once Celestica's largest customer.

To be sure, some of the transition began before Muhlhauser came aboard. The acquisition of MSL, completed in early 2004, accelerated a doubling of Celestica's high-reliability segment contribution, to 19% of the overall company revenues for 2003. But the losses have been staunched: Under Muhlhauser Celestica has been profitable in all but one year (2008), although revenues are lower overall.

In a press release, chairman Bill Etherington applauded Muhlhauser's work. "On behalf of everyone at Celestica, I want to thank Craig for his exceptional leadership. Over the past eight years, the company has significantly strengthened its operational and financial performance, particularly in the areas of revenue diversification, profitability and balance sheet. Craig’s vision has positioned Celestica for a bright future, and we look forward to his continued leadership as we conduct our global search for his successor.” 

Celestica's board has formed a committee and engaged Spencer Stuart to support a comprehensive search process to identify the next CEO, considering both external and internal candidates.