Revenue totaled $1.99B and adjusted net earnings were $51M ($0.20 per share), but GAAP net loss was $91M ($0.40 per share)

October 17, 2002

2 Min Read

TORONTO -- Celestica Inc. (NYSE, TSX: CLS), a world leader in electronicsmanufacturing services (EMS), today announced financial results for the third quarter endedSeptember 30, 2002.For the third quarter, revenue was $1,959 million, down 11 per cent from $2,203 million inthe third quarter of 2001. Adjusted net earnings* were $51 million or $0.20 per share,compared to $65 million or $0.27 for the same period last year. The company’s guidance forthe third quarter, which was revised in September, was for revenue of $1.9 - $2.0 billion and$0.18 to $0.22 adjusted net earnings per share.Net loss on a GAAP basis for the third quarter was $91 million or $0.40 per share. Theresults reflect the after-tax impact of a $136 million charge primarily associated with thecompany’s $300 - $375 million restructuring program announced in July 2002. In the thirdquarter last year, the company reported a net loss of $39 million or $0.20 per share thatreflected the after-tax impact of a $79.6 million restructuring charge.Despite late quarter revenue reductions, Celestica continued to improve operating efficiencyand deliver solid results in cash flow and balance sheet metrics. Highlights in the thirdquarter included:

  • Cash flow from operations of $371 million

  • Sequential decrease in inventory of $171 million

  • Cash cycle improvement to 15 days from 21 days quarter-to-quarter

  • Cash balances increased to $1,848 million or $8.06 per share, up $164 million fromthe second quarter despite spending $203 million to repurchase shares, seniorsubordinated notes and convertible debt

  • Sequential reduction in SG&A by 9% to $73 million

For the nine-month period ended September 30, 2002, revenue was $6,360 million,compared to $7,556 million for the same period last year. Adjusted net earnings were $184million or $0.72 per share compared to $245 million or $1.08 last year. GAAP net loss was$11 million or $0.09 per share compared to net earnings of $32 million or $0.10 per sharelast year.“The quarter was very challenging as we experienced unexpected revenue declines duringSeptember,” said Eugene Polistuk, chairman and CEO, Celestica. “Specifically, highercomplexity products built in Europe and North America were impacted by weaker endmarketdemand.”Celestica Inc.

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