Celestica announces first quarter 2007 financial results
Apr 26, 2007
First Quarter Summary
- Revenue of $1,842 million, down 5% year-over-year
- GAAP loss of ($0.15) per share compared to a loss of ($0.08) per share last year
- Adjusted net loss of ($0.04) per share compared to adjusted net earnings of $0.08 a year ago
- Q2 2007 revenue guidance of $1.85 - $2.05 billion, adjusted net earnings (loss) per share of $(0.03) - $0.05
Celestica Inc. announced financial results for the first quarter ended March 31, 2007. - See Full Data
Revenue was $1,842 million, down 5% from $1,934 million in the first quarter of 2006. Net loss on a GAAP basis for the first quarter was ($34.3) million or ($0.15) per share, compared to GAAP net loss of ($17.4) million or ($0.08) per share for the same period last year. Included in GAAP net loss for the quarter is $8 million for restructuring charges. For the same period in 2006, restructuring charges of $17 million were incurred. As previously disclosed, we expect to incur restructuring charges in the range of $20 to $40 million in 2007.
Adjusted net earnings for the quarter was a loss of ($9.1) million or a loss of ($0.04) per share compared to adjusted net earnings of $17.4 million or $0.08 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 first quarter, announced on January 30, 2007, of revenue in the range of $1.7 billion to $1.9 billion and adjusted net loss per share in the range of ($0.15) to ($0.04).
"I am encouraged that our aggressive game plan for 2007 is having a positive impact on our business performance. We are committed to building on the momentum of our first quarter results and driving further improvements." said Craig Muhlhauser, President and Chief Executive Officer, Celestica. "Over the past two quarters our customer satisfaction rating has improved significantly - a strong indicator that our customers are regaining confidence in our ability to deliver informed, flexible solutions to enable their success."
Credit Facility Update
In April 2007, we renegotiated the terms of our credit facility and reduced its size from $600 million to $300 million. The term has been
extended to April 2009. Under the new terms, Celestica presently has access to the full borrowing capacity available under the facility.
We continue to see demand softness in certain end markets going forward. For the second quarter ending June 30, 2007, the company expects revenue will be in the range of $1.85 billion to $2.05 billion, and adjusted net earnings(loss) per share to range from $(0.03) to $0.05.
First Quarter and Annual Shareholders Meeting Webcasts
Management will host its quarterly results conference call today at approximately 4:30 p.m. Eastern Time which can be accessed at www.celestica.com.
The company's Annual Shareholders Meeting is being held on April 26, 2007 in Toronto and will commence at 10:00 a.m. Eastern Time in the Vanity Fair Ballroom of the Le Royal Meridien King Edward Hotel, 37 King Street East, Toronto, Ontario. A live webcast of management's presentation will be available at www.celestica.com at approximately 10:10 a.m. Eastern Time.