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   Technology StocksCelestica

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To: Marc who wrote (423)5/21/2001 10:13:30 AM
From: Marc
   of 456
09:16 ET Positive EMS Comments : Dain Rauscher recommends overweighting sector, cites hints of order stabilization from OEMs and likelihood of reduced inventories in Q2. Separately, Bear Stearns' Ripple Effect says that SCI Systems (SCI) can be added to the list of EMS players for whom this quarter's EPS estimates have become more achievable. Others that Bear has previously cited as having achievable estimates are: FLEX, CLS, and JBL.

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To: Marc who wrote (424)5/30/2001 1:41:14 PM
From: IceCube
   of 456
I just got NR from my broker regarding Celestica. Apparently CLS has mentioned that there will be a revenue shortfall from a loss of business from Sun Micro. However, they also mentioned that it will be totally offset by the revenue increase from IBM. The net result being breakeven or better.

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To: IceCube who wrote (425)5/30/2001 1:55:37 PM
From: Marc
   of 456
Celestica Hit As Top 2 Customer Sun Micro Issues Warning
Updated: Wednesday, May 30, 2001 01:22 PM ET

By Paul Haavardsrud


TORONTO (Dow Jones)--Celestica Inc. (CLS, news, msgs) is among the hardest hit of the contract manufacturers, after Sun Microsystems Inc. (SUNW, news, msgs) announced a profit warning late Tuesday.

Celestica's two largest customers at the end of its first quarter were Sun and International Business Machines Corp. (IBM, news, msgs), each accounting for just under 20% of revenues, according to National Bank Financial analyst Benoit Chotard.

After market close Tuesday, Sun said it expects revenues in its fourth quarter ending June 30 to be between $3.8 billion and $4.0 billion, about 24% lower than the $5.02 billion recorded a year earlier and below the guidance given at the end of its third quarter.

Sun attributed part of the shortfall to weaker than expected sales for its mid-range computer servers.

"Clearly when you have that kind of percentage you do everything for that client, servers and the like, so I suspect it will have an impact on the top line of Celestica," Chotard said, noting that he is making a downward revision to his forecasts for Celestica. "33% of Celestica's business last quarter came from servers, so obviously a big portion of that was from Sun," he said.

In New York Wednesday, Celestica is down $4.91, or 9%, to $48.90 on about 4.6 million shares.

Company Web Site:

Part of the revenue shortfall expected for Celestica Inc. (CLS, news, msgs) after Sun Microsystems Inc.'s (SUNW, news, msgs) earnings warning could be offset by increased business with International Business Machines Corp. (IBM, news, msgs), said National Bank Financial analyst Benoit Chotard.

"That's the whole game plan," Chotard said. "They have a multitude of clients that hopefully offset one another."

While noting that worsening economic conditions in Europe, as well as the tough North American environment, makes it difficult for both Sun and IBM, Chotard said he expects IBM's business is holding up better than Sun's.

"IBM is selling to more Fortune 500 companies, which are continuing to spend," Chotard said.

In contrast, Sun's customer list has more exposure to the telecommunications industry, in particular competitive local exchange carriers, which is pulling back on spending, he said.

-Paul Haavardsrud, Dow Jones Newswires; 416-306-2032

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To: Marc who wrote (426)5/30/2001 10:30:13 PM
From: Ciao
   of 456
June 11th issue of Canadian Business features Celestica in the HIDE and SEEK coloumn by forensic accountant Al Rosen.

"So by looking at the cash flow statement, should an investor be concerned about Celestica's future? Yes. But that's only the tip of the iceberg......"

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To: Ciao who wrote (427)6/1/2001 2:28:31 AM
From: xtahce
   of 456
June 11th issue of Canadian Business features Celestica titled "Rising star" By Andrew Wahl

..."I expect this industry and Celestica to continue to grow over the next 10 years at a faster rate than the electronics industry as a whole," he says. "And the bigger we get, the more compelling the economics become." With talk like that—and a growing list of believers—Celestica's next milestone of US$20 billion by 2003 doesn't sound all that far-fetched.

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To: xtahce who wrote (428)6/1/2001 9:21:09 AM
From: Marc
   of 456
9:06a CLS • Alert -CSFB reiterates coverage of CLS at Strong Buy

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To: Marc who wrote (429)6/1/2001 12:30:40 PM
From: IceCube
   of 456
Consider this, Celestica just raised $700M through the sale of sub-ordinate stock. VALUED AT $58 U.S. !!
This happened at a time when CLS was trading considerably lower. Generally speaking, an investor would either halt the completion of this transaction or cancel it entirely. Furthermore, they have given an option to purchase additional shares at the same $58 level. Obviously the outlook still remains bullish. We're talking about institutional investors here.

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To: who started this subject6/15/2001 11:10:29 AM
From: Marc
   of 456
Lool like a good deal to me, about 1x 2000 sales

Celestica Agrees to Buy Omni Industries for $890 Mln (Update4)
By Linus Chua, Chan Sue Ling and Christina Soon

Singapore, June 15 (Bloomberg) -- Celestica Inc., the third- largest maker of electronics parts on contract, agreed to buy Singapore rival Omni Industries Ltd. for $890 million, doubling its manufacturing base in Asia where labor is cheaper.

The Toronto-based company will give Omni shareholders 0.045 Celestica share for each Omni share, valuing them at $1.92 or 12 percent more than when they last traded. Celestica is also making a cash offer of S$4.25 ($2.4) on the condition that only about half of the total compensation is in cash.

Celestica is the third North American electronics parts maker to buy a Singapore manufacturer in the past year, following acquisitions by bigger rivals Solectron Corp. and Flextronics International Ltd. A company could save between 20 percent to 60 percent in costs by moving production from the U.S. to Asia, estimates Credit Suisse First Boston.

``Celestica cannot compete effectively if they don't have operations in Asia,'' said Tan Choon Hoe, who helps manage about $1 billion in Asian investments at AIB Govett (Asia) Ltd., including shares of Omni. ``The cost differential in the U.S. and in Asia is so great.''

Omni shares rose 52 cents, or 17 percent, to S$3.64, their biggest one-day gain in more than two-and-a-half years. Celestica shares fell $2.16 to $40.44 in early U.S. trading. They had fallen 21 percent this year.

Asian Factories

The purchase gives Celestica factories in Malaysia, Singapore, Indonesia and Thailand. Omni also has plants in the U.S. and Mexico. Omni has a total of 9,000 workers.

``The acquisition of Omni Industries significantly enhances Celestica's presence in Asia,'' Eugene Polistuk, Celestica's chief executive, said in a statement.

Omni's key customers include Hewlett-Packard Co., the biggest maker of printers, Motorola Inc., the second-largest cellular phone maker, and Dell Computer Corp., one of the biggest makers of personal computers.

``Manufacturers are being told by customers to shift their operations to Asia, particularly China,'' said David Toh, an analyst at ING Barings in Singapore. ``There's not much overlap geographically with Omni's main presence in Asia.''

Wuthelam Industries (S) Pte., which owns a quarter of Omni, and key members of Omni's management, agreed to sell 32 percent of the company to Celestica, though they haven't chosen either the cash or stock option.

While analysts say the offer as a whole is attractive, they worry about how the cash offer would be split up if more shareholders chose that option because Celestica is limiting the total cash payout to S$860 million. Assuming all shareholders opted for cash, Omni shareholders would end up with S$2.17 in cash and the rest in Celestica shares.

``The deal is good for Omni shareholders but the uncertainty is how much cash each shareholder gets,'' said Chua Wee Thia, an analyst at Vickers Ballas Investment Research Pte. in Singapore.

The transaction is expected to close in the early part of the fourth quarter.

Takeover Speculation

Omni has been the subject of takeover speculation before.

When Solectron, the biggest maker of electronics parts on contract, agreed to buy Singapore rival NatSteel Electronics Ltd. in October for $2.4 billion, Omni's shares rose 17 percent in the following two weeks. The stock had gained largely on speculation the company would be acquired by Celestica.

In August, Flextronics International Ltd., the second-largest contract maker of electronics, paid $640 million for Singapore- based JIT Holdings Ltd. NatSteel Electronics and JIT are Omni's two largest rivals.

Celestica has bought 13 companies, plants and divisions since 1998. In a U.S. Securities and Exchange Commission filing last month, the company said it's in talks with several companies to expand manufacturing globally.

Last month, Celestica sold 12 million shares at $58.78 each, raising $705 million for acquisitions and other purposes. The company has about $1.2 billion in cash, plus unused credit of as much as $500 million.

In the past month, Celestica agreed to spend C$265 million ($174 million) to buy Canadian rival Primetech Electronics Inc. It also decided to buy a communications-equipment factory from Sagem SA and to supply the French manufacturer with $500 million worth of gear in three years.

Morgan Stanley Dean Witter represented Omni while Credit Suisse First Boston advised Celestica. ANZ Singapore Pte. will advise Omni's independent directors.

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To: Marc who wrote (431)6/15/2001 4:21:35 PM
From: IceCube
   of 456
It never seizes to amaze me how much CLS continues to grow despite turmoil from other companies.
You can't question management and their pursuits. I think the 2nd quarter results will astonish most investors. I wouldn't want to be holding short positions.

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To: IceCube who wrote (432)6/18/2001 11:17:20 PM
From: t2
   of 456

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