According to Yahoo CLS surprised by 20% last Q. Maybe SCI is suffering because of CLS aggressive drive to be the #1 supplier of components.
Looks like we beat Q4 by 1 cent and Yrly by 3 cents
NEWS FLASH while I went to get the link.....EARNINGS ARE OUT
biz.yahoo.com
Company Press Release
SOURCE: Celestica Inc.
Celestica completes 1998 growth year with record results
(All amounts in US dollars)
TORONTO, Feb. 8 /CNW-PRN/ - Celestica Inc. (NYSE, TSE, ME: CLS - news news), a world leader in electronics manufacturing services (EMS), today announced results for the
fourth quarter and the year ended December 31, 1998, a year marked with many major milestones as highlighted below:
- Record annual revenue up 62%
- Record fourth quarter revenue of $925M
- Earnings growth outpaced revenue
- Completion of largest IPO ever in EMS sector ($415M)
- Strengthened balance sheet dramatically
- Completed 8 strategic acquisitions
- Expanded global presence
For the full year, revenue increased by 62% to $3.2 billion, from $2.0 billion in 1997. Adjusted net earnings, which exclude the after-tax effect of integration costs related to acquisitions,
unusual charges and amortization of intangible assets, increased by 94% to $45.3 million or $0.84 per share, on a fully diluted basis compared to $23.3 million or $0.65 per share, on a
fully diluted basis last year. Net earnings, which take into account the impact of these items, was a loss of $48.5 million or $0.94 per share, compared to a net loss of $6.9 million or
$0.20 per share in 1997.
''1998 was a year of outstanding achievements for Celestica. Eight acquisitions enhanced our service offerings, global manufacturing capabilities and our strategic customer relationships,''
said Eugene Polistuk, President and CEO, Celestica Inc. ''Furthermore, our financial results for the year were solid and our IPO significantly improved our financial position for growth.''
During the fourth quarter, ended December 31, 1998, revenue was $925.3 million, up 35% from $683.2 million in the same period of 1997 and up 14% sequentially. Adjusted net
earnings increased 52% to $18.7 million or $0.27 per share, on a fully diluted basis for the three months ended December 31, 1998, compared to $12.3 million or $0.32 per share, on a
fully diluted basis, for the same period of 1997. The company recorded a net loss of $3.8 million or $0.06 per share in the fourth quarter of 1998, compared to net earnings of $2.0
million or $0.05 per share for the same period of 1997. Net loss for the fourth quarter of 1998 includes a charge of $11.9 million related to the merger with International Manufacturing
Services, Inc. (IMS). Without this charge, net earnings would have been $8.1 million or $0.12 per share.
Recent Developments
Celestica completed the merger with IMS in the fourth quarter, providing the Company with a major foothold in Asia, as well as complementary markets, customers and skills. This was
Celestica's eighth acquisition of 1998 and its twelfth since the beginning of 1997. IMS is now a wholly-owned subsidiary of Celestica and operates as Celestica Asia.
Effective February 8, 1999, Mr. Robert Crandall, a director of Celestica since July 1998, was appointed to the role of Chairman of the Board. Mr. Crandall is the former Chairman of
the Board, President and Chief Executive Officer of AMR Corporation and former Chairman of the Board and CEO of American Airlines Inc. Additionally, Mr. Crandall will join the
executive committee of Celestica, together with Eugene Polistuk and Tony Melman (Vice President of Onex Corporation).
''Celestica has gone through a profound transformation since our divestiture from IBM in October, 1996. In that timeframe, we have expanded from our base in Toronto to 24 facilities in
7 countries, added approximately 12,000 people and improved our market and customer diversification,'' said Eugene Polistuk. ''We now have the infrastructure in place to achieve our
strategic goal of $10 billion in sales by year 2001.''
About Celestica
---------------
With over 14,000 employees worldwide, Celestica operates 24 manufacturing
and design facilities in the United States, Canada, Mexico, the United
Kingdom, Ireland, Thailand, Hong Kong and China. Celestica provides a broad
range of services including design, prototyping, assembly, testing, product
assurance, supply chain management, worldwide distribution and after-sales
service. Its customers include industry leading original equipment
manufacturers (OEMs), primarily in the computer and communications sectors.
For further information on Celestica, visit its website at celestica.com
Statements contained in this press release which are not historical facts are forward-looking statements which involve risk and uncertainties which could cause actual results to differ
materially from those expressed in the forward-looking statements. Among the key factors that could cause such differences are: the level of overall growth in the electronics
manufacturing services (EMS) industry; variability of operating results among periods; dependence on the computer and communications industries; dependence on a limited number of
customers; and the ability to manage expansion, consolidation and the integration of acquired businesses. These and other factors are discussed in the Company's initial public offering
prospectus, the IMS merger prospectus, the third quarter Management's Discussion and Analysis included in public filings and other public filings.
CELESTICA INC.
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND RETAINED EARNINGS
(DEFICIT)
(in thousands of U.S. dollars, except per share amounts)
(unaudited)
Three months ended Year ended
December 31, December 31,
1998 1997 1998 1997
-------------------------------------------------------------------------
Revenue $925,298 $683,187 $3,249,200 $2,006,634
--------------------------------------------
Gross profit $69,193 $48,620 $230,535 $139,667
Selling, general and
administrative Expenses 36,684 18,307 130,565 68,315
Amortization of intangible
assets 10,794 4,806 45,372 15,260
Integration costs related to
Acquisitions 2,471 10,400 8,123 13,292
Other charges 11,913 - 64,743 13,900
Interest expense, net 3,076 11,839 32,249 33,633
--------------------------------------------
Earnings (loss) before
income taxes 4,255 3,268 (50,517) (4,733)
Provision for (recovery of)
income Taxes 8,029 1,313 (2,046) 2,186
--------------------------------------------
Net earnings (loss) for the
period (3,774) 1,955 (48,471) (6,919)
Retained earnings (deficit),
beginning of period (48,444) (5,702) (3,747) 3,172
--------------------------------------------
Deficit, end of period $(52,218) $(3,747) $(52,218) $(3,747)
--------------------------------------------
Basic earnings (loss)
per share (1) $(0.06) $0.05 $(0.94) $(0.20)
--------------------------------------------
Weighted average number of
shares outstanding (in 000's) 67,034 36,327 51,496 34,789
--------------------------------------------
(1) Fully diluted earnings per share has not been disclosed as the
effect of the potential conversion of dilutive securities is
anti-dilutive.
-------------------------------------------------------------------------
ADJUSTED NET EARNINGS
(in thousands of U.S. dollars, except per share amounts)
(unaudited)
Adjusted net earnings (2) $18,718 $12,326 $45,322 $23,265
Adjusted net earnings per
share - basic $0.28 $0.34 $0.88 $0.67
Adjusted net earnings per
share - fully diluted $0.27 $0.32 $0.84 $0.65
(2) Adjusted net earnings exclude the after-tax effect of other charges,
integration costs related to acquisitions and amortization of
intangible assets.
CELESTICA INC.
CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
(unaudited)
As at December 31 1998 1997
-------------------------------------------------------------------------
Assets
Current assets
Cash and short-term investments $ 31,721 $106,052
Accounts receivable 462,995 372,146
Inventories 430,932 312,926
Other assets 57,277 40,578
-----------------------
982,925 831,702
Capital assets 214,926 124,242
Intangible assets 374,508 352,264
Other assets 64,066 39,099
-----------------------
$1,636,425 $1,347,307
-----------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities $621,946 $451,024
Deferred income taxes 2,482 2,455
Current portion of long-term debt 2,321 14,961
-----------------------
626,749 468,440
Long-term debt 133,483 503,964
Other liabilities 16,927 11,677
-----------------------
777,159 984,081
Shareholders' Equity
Capital stock 912,074 367,417
Deficit (52,218) (3,747)
Foreign currency translation adjustment (590) (444)
-----------------------
859,266 363,226
-----------------------
$1,636,425 $1,347,307
-----------------------
-----------------------
SOURCE: Celestica Inc. |
