| Celestica's First Quarter Weakens |
 |
 |
| Written by Mike Buetow | |||
| Thursday, 27 April 2006 05:11 | |||
|
TORONTO – Celestica’s first-quarter GAAP net loss grew 50% to 17.4 million while revenue fell 10% year-over-year to $1.93 billion, the company said today.
The March quarter included $17 million in previously announced restructuring charges, said the top-tier electronics manufacturing services firm.
Celestica guided for June revenue of $2.05 billion to $2.25 billion.
On Jan. 26, the company had guided for first quarter revenue of $1.8 billion to $2 billion. “Our results in the first quarter reflected the impact of a seasonal revenue decline from the fourth quarter as well as substantial investments being made to support our major new program launches and growth in our low-cost facilities,” said chief executive Steve Delaney. “We continue to see a positive demand environment into the second quarter. As our new programs ramp, material flows stabilize and restructuring activities continue as planned, we expect to show improvements in our operating results in the coming quarters.” By geography, Asia posted sales of $1 billion, up from $965.4 million a year ago, due in part to the closing of certain factories elsewhere and the migration of programs to Asia. In the Americas revenue dropped to $672.1 million from $818.9 million. In Europe, sales dropped $100 million to $308.9 million. Iinventories rose 9% sequentially. The cash cycle extended 6 days and inventory turns fell to 6.3 turns, down 1.1 turn year-over year. Management blamed the inventory build on tight component supply and procurement for new ramps for consumer electronics programs that begin in the second quarter.Return on invested capital was 4%, down 2.5 points from the previous quarter.
|
|||
| Last Updated on Thursday, 27 April 2006 11:28 |
Columns
| Breaking Paradigms |
Multi-generational teams can ensure new technology is properly vetted. |
| Read more... |
| Packaging Players Face High Stakes |
OSATs are facing off with foundries over next-gen packages. |
| Read more... |
Features
| Why Mexico (Again) Matters |
Mid-market providers are responding to OEM desires for more regional approach. |
| Read more... |
| ‘Trekking On’ |
After a week in San Diego, Las Vegas seemed a strange old world. A new location, a new lease on life. |
| Read more... |
Search
Search
Login
CB Login
Language
Language
Products
OptiCon THT-Line AOI now can be directly integrated in the production line. Carriers sized up to 620 x 510mm can be fed into the system. PCB inspection area is 540 x 410mm at a component height up to...
