Oct 18, 2001
The EMS firm expects its performance to improve by the end of the current quarter, however.
The company recorded revenue of $2.2 billion in the three months ended Sept. 30, down from $2.6 billion in the year-ago comparable period when it reported net income of $55.7 million, or 25 cents a share.
"The major impact on end-markets associated with the global downturn in communications and information technology spendinghas created a challenging environment but, we are responding in a focused and effective manner," said Eugene Polistuk, chairman and chief executive of Celestica in a statement.
"We can't predict when end-markets will turn around but remain committed to investing in strategic long- term opportunities such as the recent expansion of our relationship with Lucent and our acquisition of Omni Industries," said Polistuk.
Celestica's gross margin slipped a bit to 6.8% in the latest quarter from approximately 7% in the year-ago quarter. Charges taken during the quarter included $43.5 million for reorganization of its operations and $36.1 million related to assets write-down.
On the positive side, Celestica boosted its cash to $965.9 million from $883.8 million in December 2000 and slashed its accounts receivable by approximately $472 million to $1.3 billion. Its inventory remained relatively unchanged at $1.67 billion, down from $1.66 billion in December.
