Electronics Production | January 31, 2007
Mexico plant blamed for Celestica's troubles
Celestica's President, Craig Muhlhauser said Celestica would take a US$30-million charge in the fourth quarter for a previously announced inventory writedown at its factory in Monterrey, Mexico.
Celestica earlier shifted jobs from other plants to its Mexican site within 18 months. This did cause most of the trouble for Celestica. The company attempted to implement a quick transfer of 16 customers from other plants to Mexico. But the project instead ended up in disengagements with customers, which did undermine the credibility and eroded shareholder value in the company, according to Craig Muhlhauser. Although he didn't want to leave anybody with the impression that the entire company is broken, saying that parts of the company, especially in Asia, are showing operating margins and financial performances above the industry average, according to Canadian Press. Also, according to Printed Circuit Design & Manufacture, Anthony Puppi, executive vice president and CFO at Celestica Inc., has announced his intention to retire from the company. He will continue to act in the capacity of CFO until Celestica finds a new one.