Electronics Production | January 28, 2009
Celestica Q4 loss widens
Celestica Inc. today announced financial results for the fourth quarter and fiscal year ended December 31,2008.
Revenue was $1,935 million compared to $2,211 million in the fourth quarter of 2007. Net loss on a GAAP basis for the fourth quarter was ($822.2) million or ($3.58) per share, compared to a GAAP net loss of ($11.7) million or ($0.05) per share for the same period last year. The GAAP loss in the fourth quarter of 2008 was primarily a result of the write-off of the company's remaining goodwill. For 2008, revenue was $7,678 million compared to $8,070 million for 2007. Net loss on a GAAP basis was ($720.5) million or ($3.14) per share compared to GAAP net loss of ($13.7) million or ($0.06) per share last year. Adjusted net earnings for 2008 were $187.7 million or $0.82 per share compared to adjusted net earnings of $62.3 million or $0.27 per share in 2007. "Despite the significant turmoil in the global economic environment, Celestica delivered strong operating results in the fourth quarter and throughout the year," said Craig Muhlhauser, President and Chief Executive Officer, Celestica. "We had four positive quarters and generated full year gross margins of 7% and had operating margins of 3%. During the year, we generated free cash flow of $127 million and finished 2008 with a very strong balance sheet. "While our operations performed very well in 2008, the current uncertain economic backdrop, combined with end-market weakness which accelerated in the fourth quarter, resulted in our decision to write-off our remaining goodwill. While end-market volatility is expected to continue throughout 2009, Celestica will remain focused on pursuing profitable revenue opportunities, while continuing to improve working capital efficiency, operating margins and free cash flow." For the first quarter ending March 31, 2009, the company anticipates revenue to be in the range of $1.4 billion to $1.6 billion, and adjusted net earnings per share to range from $0.07 to $0.13.