Celestica announces Q2 results

Revenue of $2,224 million, up 15% from the first quarter, down 1% year-over-year - GAAP loss of ($0.13) per share compared to net earnings of $0.06 per share last year - Adjusted net earnings of $0.13 per share compared to $0.17 a year ago - Q3 revenue guidance of $2.15 - $2.35 billion, adjusted EPS of $0.12 - $0.20

Revenue was $2,224 million, down 1% from $2,251 million in the second quarter of 2005. Net loss on a GAAP basis for the second quarter was ($30.3) million or ($0.13) per share, compared to GAAP net earnings of $12.6 million or $0.06 per share for the same period last year. Included in GAAP net loss for the quarter are charges of $20 million associated with previously announced restructuring plans and a $33 million non-cash loss associated with the sale of the company's plastics business in the quarter.

Adjusted net earnings for the quarter were $29.1 million or $0.13 per share compared to $39.8 million or $0.17 per share for the same period last year. Adjusted net earnings is defined as net earnings before amortization of intangible assets, gains or losses on the repurchase of shares and debt, integration costs related to acquisitions, option expense, option exchange costs and other charges, net of tax and significant deferred tax write-offs (detailed GAAP financial statements and supplementary information related to adjusted net earnings appear at the end of this press release). These results compare with the company's guidance for the second quarter, announced on April 27, 2006, of revenue of $2.05 to $2.25 billion and adjusted net earnings per share of $0.08 to $0.16.

For the six months ended June 30, 2006, revenue was $4,158 million compared to $4,401 million for the same period in 2005. Net loss on a GAAP basis was ($47.7) million or ($0.21) per share compared to net earnings of $1.0 million or $0.00 per share last year. Adjusted net earnings for the first half of 2006 were $46.5 million or $0.20 per share compared to adjusted net earnings of $73.2 million or $0.32 per share for the same period in 2005.

"The sequential revenue growth reflects the growing benefits from our focus on revenue diversification," said Steve Delaney, CEO, Celestica. "With a backdrop of stable end markets, improved efficiencies in our high growth facilities, ramping new programs, and the completion of our restructuring activities, we are confident in continued revenue growth and stronger margins throughout 2006."

Outlook
For the third quarter ending September 30, 2006, the company anticipates revenue to be in the range of $2.15 billion to $2.35 billion, and adjusted earnings per share ranging from $0.12 to $0.20. The revenue outlook reflects a stable end market environment as well as additional volume from ramping new programs. The anticipated improvement in adjusted earnings is being driven by continued benefits from our restructuring activities and increased efficiencies in our Mexico and European operations.