TORONTO -- Celestica swung to a third-quarter net loss of $600,000 on revenue of $1.56 billion on weaker end-market demand and higher restructuring costs.

For the period ended Sept. 30, sales were down 23% year-over-year and up 11% sequentially. The EMS firm, the world's fourth-largest, reported GAAP net earnings of $32.1 million a year ago.

Adjusted net earnings for the quarter were $39.5 million, compared to adjusted net earnings of $54.3 million for the same period last year.

The company guided for December quarter revenue of $1.55 billion to $1.70 billion.

For the quarter, consumer demand was up 61% sequentially. Storage and server end-markets also improved, while telecommunications (down 30% sequentially) and communications slipped. Operating margins rose 70 basis points to 3.4%, aided by one-time adjustments to SG&A.

 

In September, Celestica announced its intention to redeem all of its outstanding 7.875% senior subordinated notes due 2011 (Notes), with an aggregate principal amount of $339.4 million. The company will complete the redemption in the fourth quarter of 2009 and expects to record a gain of approximately $10 million on the redemption.

 

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