Celestica Announces First Quarter Results.

Celestica Inc. (Toronto, Ontario, Canada) has announced first quarter financial results. Revenue for the three months ended March 31, 2001, was $2,693 million, up 67 percent from $1,612 million in the first quarter of 2000. The increase was driven by growth in all geographies and in key end-markets such as communications, servers and storage.

Adjusted net earnings, which exclude the after-tax impact of amortization of intangible assets, integration costs related to acquisitions and one-time charges, increased 121 percent to $87.3 million compared to $39.5 million in the first quarter of 2000. The year-over-year improvements resulted from the higher revenue and continued expansion in operating margin.

Adjusted net earnings per share rose 95 percent to $0.39 per share compared to $0.20 per share for the same period in 2000. Net earnings increased 110 percent to $54.8 million, or $0.25 per share, compared to $26.1 million or $0.13 per share in the first quarter of 2000. For the second quarter, the company's guidance for revenue is approximately $2.6 to $2.8 billion.

The company also announced that, to better balance its cost structure in this weaker, end-market environment, it expects to record a total of $40 to $60 million in restructuring charges by the end of the second quarter. The restructuring will focus on facility consolidations and a global workforce reduction of less than 10 percent. Second quarter guidance for adjusted earnings is approximately $0.40 to $0.42 per share.

For the full year, the company said that, due to continuing caution being expressed by customers related to lower levels of visibility for the balance of the year, Celestica would also exercise a similar caution and not provide any full year guidance at this time. The company said it continues to feel comfortable with its long-term 2003 financial goals of $20 billion in revenue, operating margins higher than 5 percent and an operating return on invested capital of greater than 30 percent.

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