FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of July 2002
001-14832
(COMMISSION FILE NUMBER)
- --------------------------------------------------------------------------------
CELESTICA INC.
(TRANSLATION OF REGISTRANT'S NAME INTO ENGLISH)
- --------------------------------------------------------------------------------
12 CONCORDE PLACE
TORONTO, ONTARIO
CANADA, M3C 3R8
(416) 448-5800
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
----- -----
Indicate by check mark whether the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Indicate by check mark whether the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
Indicate by check mark whether by furnishing the information contained
in this Form, is the registrant also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
----- -----
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-_________
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CELESTICA INC.
FORM 6-K
MONTH OF JULY 2002
Filed with this Form 6-K is the following:
- - Press release, dated July 17, 2002, the text of which is attached hereto as
Exhibit 99.1 and is incorporated herein by reference, including Celestica Inc.'s
second quarter 2002 and six months consolidated financial information.
- - Press release, dated July 17, 2002, the text of which is attached hereto as
Exhibit 99.2 and is incorporated herein by reference, including Celestica Inc.'s
second quarter supplemental information.
- - Press release, dated July 17, 2002, the text of which is attached hereto as
Exhibit 99.3 and is incorporated herein by reference.
- - Press release, dated July 17, 2002, the text of which is attached hereto as
Exhibit 99.4 and is incorporated herein by reference.
EXHIBITS
99.1 - Press Release, dated July 17, 2002, including Celestica Inc.'s second
quarter 2002 and six months consolidated financial information
99.2 - Press Release, dated July 17, 2002, including Celestica Inc.'s second
quarter supplemental information
99.3 - Press Release, dated July 17, 2002
99.4 - Press Release, dated July 17, 2002
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CELESTICA INC.
Date: July 19, 2002 BY: /s/ Graham Thouret
--------------------------------
Graham Thouret
Vice President & Treasurer
EXHIBIT INDEX
99.1 - Press Release, dated July 17, 2002, including Celestica Inc.'s
second quarter 2002 and six months consolidated financial information
99.2 - Press Release, dated July 17, 2002, including Celestica Inc.'s
second quarter supplemental information
99.3 - Press Release, dated July 17, 2002
99.4 - Press Release, dated July 17, 2002
Exhibit 99.1
FOR IMMEDIATE RELEASE Wednesday, July 17, 2002
(All amounts in U.S. dollars.
Per share information based on diluted
shares outstanding unless noted otherwise.)
CELESTICA ANNOUNCES SECOND QUARTER RESULTS
HIGHLIGHTS
----------
- - Revenue of $2,249 million, adjusted net earnings of $0.28 per share
- - Efficiency gains drive cash cycle improvements and strong cash flow
- - Cash position increases to record $1.7 billion
- - Company announces plan to redeem its 10 1/2% Senior Subordinated Notes due
2006
- - Company announces plan to repurchase up to 5% of its subordinated voting
shares
- - Company announces reduction in manufacturing capacity to accelerate operating
efficiency through improved utilization rates
TORONTO, Canada - Celestica Inc. (NYSE, TSX: CLS), a world leader in electronics
manufacturing services (EMS), today announced financial results for the second
quarter ended June 30, 2002.
For the second quarter, revenue was $2,249 million, down 15 per cent from $2,661
million in the second quarter of 2001. Adjusted net earnings* were $69 million
or $0.28 per share, compared to $93 million or $0.41 for the same period last
year. The company's guidance for the second quarter, which was provided in
April, was for revenue of $2.1 - $2.4 billion and $0.25 to $0.31 adjusted net
earnings per share.
Net earnings on a GAAP basis for the second quarter were $40 million or $0.15
per share, up 150% compared to net earnings of $16 million or $0.06 per share
for the same period last year.
Celestica continued to improve all aspects of its financial performance.
Highlights in the second quarter included:
- Cash flow from operations of $237 million
- Inventory decrease of $121 million sequentially
- Inventory turns improvement to 7.1 versus 6.1 in the first quarter
- Cash cycle improvement to 21 days from 28 days in the prior quarter
- Increased financial liquidity including a cash balance of $1,684 million,
(up $201 million sequentially from March 31) and approximately $1 billion
in unused credit facilities
- A conservative debt to capital ratio of 21% (including convertible notes
as debt)
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For the six-month period ended June 30, 2002, revenue was $4,401 million,
compared to $5,353 million for the same period last year. Adjusted net earnings
were $133 million or $0.53 per share compared to $180 million or $0.81 last
year. Net earnings were $80 million or $0.30 per share compared to $71 million
or $0.31 per share last year.
"Despite the ongoing weakness in technology end markets, Celestica continued to
produce solid gains in all key areas of the business," said Eugene Polistuk,
chairman and CEO, Celestica. "We have responded to the current economic
environment by driving meaningful cost reductions for our customers while still
producing consistent margins, healthy improvements in our cash cycle and steady
increases in our overall returns on capital."
SUBORDINATED NOTE AND SHARE REPURCHASE
- --------------------------------------
As a result of its balance sheet strength, the company announced that it will
redeem all of its 10 1/2% Senior Subordinated Notes due 2006 in accordance with
their terms at a redemption price of 105.25% of the principal amount, together
with accrued and unpaid interest to the redemption date. The company expects
that the redemption date will occur prior to the end of the third quarter. The
outstanding principal amount of the notes is $130 million. The redemption will
be financed out of the company's existing cash resources.
Celestica also announced its intention to launch a Normal Course Issuer Bid,
subject to the approval of the Toronto Stock Exchange. If approved, the company
will be authorized to repurchase, at its discretion during the next 12 months,
up to 5% of the company's total shares outstanding on the open market subject to
the normal terms and limitations of such bids.
"We feel that Celestica represents a leadership franchise in the EMS industry
with exceptional financial strength," said Anthony Puppi, executive vice
president and CFO. "This stock repurchase program is a reflection of the
confidence we have in the company and the commitment we have to using our
balance sheet strength to generate economic value."
FUTURE GUIDANCE AND CAPACITY REDUCTION
- --------------------------------------
Celestica also announced that in response to the prolonged and difficult
end-market conditions, it will reduce its manufacturing capacity in order to
accelerate operating efficiency through improved utilization rates. The
restructuring will result in a total charge between $300 - $375 million to be
recorded by the end of fiscal 2002. Of the charge, the company expects the
maximum cash cost to be $150 million. The restructuring will result in a
workforce reduction of approximately 10-15%.
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"Over the past 15 months, we have re-balanced our manufacturing footprint and
have been focused on driving greater efficiency from our operations," said
Polistuk. "We have made significant progress on these initiatives resulting in
stable profitability, and as a result believe that we can undertake this action
without compromising our growth opportunities or limiting our customers'
potential growth needs. The cash cost is within the free cash flow the company
generated in its most recent quarter and we anticipate payback of the cash
portion within 12 months from when the costs are incurred."
Looking forward, the company provided guidance for the third quarter ending
September 30. The company expects revenue in the range of $2.1 - $2.4 billion,
with adjusted net earnings per share of approximately $0.26-$0.33.
*Detailed GAAP financial statements and supplementary information related to
adjusted net earnings appear at the end of this press release.
ABOUT CELESTICA
- ---------------
Celestica is a world leader in the delivery of innovative electronics
manufacturing services (EMS). With 2001 revenues in excess of US$10 billion,
Celestica is a global operator of a highly sophisticated manufacturing network,
providing a broad range of services to leading OEMs (original equipment
manufacturers) in the information technology and communications industries.
Unrivalled in quality, technology and supply chain management, Celestica
provides competitive advantage to its customers by improving time-to-market,
scalability and manufacturing efficiency. Celestica has more than 40,000
employees in over 40 locations in the Americas, Europe and Asia.
For further information on Celestica, visit its Web site at www.celestica.com.
The company's security filings can also be accessed at www.sedar.com and
www.sec.gov.
SAFE HARBOUR AND FAIR DISCLOSURE STATEMENT
- ------------------------------------------
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; LOWER-THAN-EXPECTED CUSTOMER DEMAND; COMPONENT
CONSTRAINTS; 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 VARIOUS PUBLIC FILINGS AT www.sedar.com AND http://www.sec.gov.
AS OF ITS DATE, THIS PRESS RELEASE CONTAINS ANY MATERIAL INFORMATION ASSOCIATED
WITH THE COMPANY'S SECOND QUARTER FINANCIAL RESULTS, AND REVENUE AND ADJUSTED
NET EARNINGS GUIDANCE FOR THE THIRD QUARTER ENDING SEPTEMBER 30, 2002.
Contacts:
Laurie Flanagan Paul Carpino
Celestica Global Communications Celestica Investor Relations
(416) 448-2200 (416) 448-2211
media@celestica.com clsir@celestica.com
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FINANCIAL SUMMARY
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GAAP FINANCIAL SUMMARY
THREE MONTHS ENDED JUNE 30 2001 2002 CHANGE
-------------------------- ---- ---- ------
Revenue $ 2,661 M $ 2,249 M $ (412) M
Net earnings 16 M 40 M 24 M
Net EPS $ 0.06 $ 0.15 $ 0.09
Cash Provided by Operations $ 212 M $ 237 M $ 25 M
Cash Position at June 30 $ 1,261 M $ 1,684 M $ 423 M
SIX MONTHS ENDED JUNE 30 2001 2002 Change
------------------------ ---- ----
Revenue $ 5,353 M $ 4,401 M $ (952) M
Net earnings 71 M 80 M 9 M
Net EPS $ 0.31 $ 0.30 $ (0.01)
Cash Provided by (used in) Operations $ (49) M $ 511 M $ 560 M
----------------------------------------------------------------------------------------------------
ADJUSTED NET EARNINGS SUMMARY
THREE MONTHS ENDED JUNE 30 2001 2002 CHANGE
-------------------------- ---- ---- ------
Adjusted net earnings $ 93 M $ 69 M $ (24) M
Adjusted net EPS (1) $ 0.41 $ 0.28 $ (0.13)
SIX MONTHS ENDED JUNE 30 2001 2002 CHANGE
------------------------ ---- ---- ------
Adjusted net earnings $ 180 M $ 133 M $ (47) M
Adjusted net EPS (1) $ 0.81 $ 0.53 $ (0.28)
Adjusted Net Earnings Calculation (in millions)
THREE MONTHS SIX MONTHS
------------ ----------
2001 2002 2001 2002
---- ---- ---- ----
GAAP net earnings $ 16 $ 40 $ 71 $ 80
Add: amortization of intangibles 28 22 58 44
Add: acquisition integration costs 8 10 10 14
Add: other non-recurring charges 53 - 57 -
Less: tax impact of above (12) (3) (16) (5)
-------- ------- -------- -------
Adjusted net earnings $ 93 $ 69 $ 180 $ 133
======= ====== ======= ======
----------------------------------------------------------------------------------------------------
GUIDANCE SUMMARY
2Q VERSUS ACTUALS 2Q 02 GUIDANCE 2Q 02 ACTUALS
----------------- -------------- -------------
Revenue $2.1B - $2.4B $2.25B
Adjusted net EPS $0.25 - $0.31 $0.28
FORWARD GUIDANCE 3Q 02 GUIDANCE
---------------- --------------
Revenue $2.1B - $2.4B
Adjusted net EPS $0.26 - $0.33
----------- ----------------------------------------------------------------------------------------
(1) For purposes of the diluted per share calculation for the three
and six months ended June 30, 2002, the weighted average number
of shares outstanding was 236.0 million and 236.5 million,
respectively.
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DISCLOSURE ON FINANCIAL RESULTS
- -------------------------------
As part of its quarterly financial press releases, Celestica provides extensive
disclosure including income statement, balance sheet, cash flow from operations
and detailed accompanying footnotes. All information is prepared in accordance
with Canadian GAAP which conforms in all material respects with U.S. GAAP except
as noted in the company's annual report. These same documents are also filed
with the United States Securities and Exchange Commissions and Canadian
Securities Commissions.
To supplement this information, Celestica also provides information on adjusted
net earnings. As a result of the significant number of acquisitions made by
Celestica over the past few years, management of Celestica believes adjusted net
earnings is a useful measure of operating performance on an enterprise-wide
basis that also facilitates reliable period-to-period comparisons. Adjusted net
earnings exclude the effects of acquisition-related charges, (most
significantly, amortization of intangible assets and integration costs related
to acquisitions) other non-recurring charges (most significantly, restructuring
costs and the write-down of goodwill and intangible assets) and the related
income tax effect of these adjustments. Adjusted net earnings do not have any
standardized meaning prescribed by GAAP and are not necessarily comparable to
similar measures presented by other issuers. Adjusted net earnings are not a
measure of performance under Canadian GAAP or U.S. GAAP and should not be
considered in isolation or as a substitute for net earnings prepared in
accordance with Canadian GAAP or U.S. GAAP.
For comparative purposes, historical detail on adjusted net earnings are shown
in the company's securities filings including annual reports, press releases and
prospectuses, as well as in supplementary historical information found on the
company's web site.
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CELESTICA INC.
CONSOLIDATED BALANCE SHEETS
(IN MILLIONS OF U.S. DOLLARS)
(UNAUDITED)
DECEMBER 31 JUNE 30
2001 2002
-------------- --------------
ASSETS
Current assets:
Cash and short-term investments.................$ 1,342.8 $ 1,683.7
Accounts receivable ............................ 1,054.1 1,101.5
Inventories .................................... 1,372.7 1,116.9
Prepaid and other assets........................ 177.3 153.7
Deferred income taxes........................... 49.7 57.7
--------------- ---------------
3,996.6 4,113.5
Capital assets ................................... 915.1 929.4
Goodwill on business combinations (note 2)........ 1,128.8 1,137.9
Other intangible assets (note 2).................. 427.2 420.5
Other assets ..................................... 165.2 220.3
--------------- ---------------
$ 6,632.9 $ 6,821.6
=============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable................................$ 1,198.3 $ 1,167.6
Accrued liabilities............................. 405.7 487.4
Income taxes payable............................ 21.0 28.3
Deferred income taxes........................... 21.8 22.4
Current portion of long-term debt .............. 10.0 3.1
--------------- ---------------
1,656.8 1,708.8
Long-term debt ................................... 137.4 135.0
Accrued post-retirement benefits ................. 47.3 75.8
Deferred income taxes............................. 41.5 42.8
Other long-term liabilities....................... 4.3 4.0
-------------- --------------
1,887.3 1,966.4
Shareholders' equity:
Convertible debt................................ 886.8 901.0
Capital stock................................... 3,699.0 3,704.6
Retained earnings............................... 162.7 234.2
Foreign currency translation adjustment......... (2.9) 15.4
--------------- --------------
4,745.6 4,855.2
-------------- --------------
$ 6,632.9 $ 6,821.6
=============== ===============
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
THESE INTERIM FINANCIAL STATEMENTS SHOULD BE READ IN CONJUNCTION WITH THE
ANNUAL CONSOLIDATED FINANCIAL STATEMENTS.
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CELESTICA INC.
CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS
(IN MILLIONS OF U.S. DOLLARS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
2001 2002 2001 2002
------------ ------------ --------- ---------
Revenue........................................................ $ 2,660.7 $ 2,249.2 $ 5,353.3 $ 4,400.7
Cost of sales.................................................. 2,468.5 2,087.2 4,967.8 4,086.6
------------ ------------ --------- ---------
Gross profit................................................... 192.2 162.0 385.5 314.1
Selling, general and administrative expenses .................. 86.4 80.0 175.5 156.7
Amortization of goodwill and other intangible assets (note 2).. 28.1 21.7 57.7 43.7
Integration costs related to acquisitions ..................... 7.8 10.2 10.1 14.1
Other charges (note 4)......................................... 53.2 - 57.0 -
------------ ----------- --------- ---------
Operating income............................................... 16.7 50.1 85.2 99.6
Interest on long-term debt..................................... 5.1 5.5 9.4 10.9
Interest income, net........................................... (7.5) (4.1) (15.4) (7.8)
------------- ------------- ---------- ----------
Earnings before income taxes................................... 19.1 48.7 91.2 96.5
------------ ------------ --------- ---------
Income taxes:
Current ..................................................... 6.3 9.6 19.3 19.0
Deferred (recovery).......................................... (3.0) (1.3) 1.3 (2.6)
------------- ------------- --------- ----------
3.3 8.3 20.6 16.4
------------ ------------ --------- ---------
Net earnings for the period.................................... 15.8 40.4 70.6 80.1
Retained earnings, beginning of period......................... 268.9 198.2 217.5 162.7
Convertible debt accretion, net of tax......................... (3.6) (4.4) (7.0) (8.6)
------------- ------------- ---------- ----------
Retained earnings, end of period............................... $ 281.1 $ 234.2 $ 281.1 $ 234.2
============ ============ ========== ==========
Basic earnings per share....................................... $ 0.06 $ 0.16 $ 0.31 $ 0.31
Diluted earnings per share (note 6)............................ $ 0.06 $ 0.15 $ 0.31 $ 0.30
Weighted average number of shares outstanding:
- basic (in millions)....................................... 207.0 230.2 204.7 230.0
- diluted (in millions) (note 6)............................ 225.5 236.0 223.7 236.5
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
THESE INTERIM FINANCIAL STATEMENTS SHOULD BE READ IN CONJUNCTION WITH THE
ANNUAL CONSOLIDATED FINANCIAL STATEMENTS.
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CELESTICA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN MILLIONS OF U.S. DOLLARS)
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
2001 2002 2001 2002
------------ ----------- ----------- -----------
CASH PROVIDED BY (USED IN):
OPERATIONS:
Net earnings for the period ........................... $ 15.8 $ 40.4 $ 70.6 $ 80.1
Items not affecting cash:
Depreciation and amortization........................ 71.3 77.5 141.0 156.5
Deferred income taxes................................ (3.0) (1.3) 1.3 (2.6)
Other charges........................................ 16.9 - 17.2 -
Other................................................ (0.5) 1.8 1.3 4.2
------------ ----------- ----------- -----------
Cash from earnings..................................... 100.5 118.4 231.4 238.2
----------- ----------- ----------- -----------
Changes in non-cash working capital items:
Accounts receivable.................................. (128.1) (31.4) 173.8 (19.7)
Inventories.......................................... 208.0 122.0 176.7 280.6
Other assets......................................... 144.6 24.6 91.3 (12.4)
Accounts payable and accrued liabilities............. (108.5) (3.5) (704.5) 16.6
Income taxes payable................................. (4.3) 6.6 (17.3) 7.3
------------ ----------- ------------ -----------
Non-cash working capital changes..................... 111.7 118.3 (280.0) 272.4
----------- ----------- ------------ -----------
Cash provided by (used in) operations................ 212.2 236.7 (48.6) 510.6
----------- ----------- ------------ -----------
INVESTING:
Acquisitions, net of cash acquired................... (82.4) - (148.1) (102.9)
Purchase of capital assets........................... (59.3) (48.9) (136.1) (75.0)
Other................................................ 1.3 20.9 0.9 20.9
----------- ----------- ----------- -----------
Cash used in investing activities.................... (140.4) (28.0) (283.3) (157.0)
------------ ------------ ------------ ------------
FINANCING:
Bank indebtedness.................................... - (0.4) - (1.7)
Decrease in long-term debt........................... (0.4) (9.3) (1.7) (14.9)
Deferred financing costs............................. - (0.2) - (0.6)
Issuance of share capital............................ 717.9 1.4 722.0 4.6
Share issue costs, pre-tax .......................... (10.0) - (10.0) -
Other................................................ (0.9) 0.7 (0.9) (0.1)
----------- ----------- ------------ ------------
Cash provided by (used in) financing activities...... 706.6 (7.8) 709.4 (12.7)
----------- ------------ ----------- ------------
Increase in cash....................................... 778.4 200.9 377.5 340.9
Cash, beginning of period.............................. 482.9 1,482.8 883.8 1,342.8
----------- ------------ ----------- ------------
Cash, end of period.................................... $ 1,261.3 $ 1,683.7 $ 1,261.3 $ 1,683.7
=========== ============ =========== ============
Supplemental information:
Paid during the period:
Interest............................................. $ 7.6 $ 9.8 $ 8.2 $ 12.1
Taxes................................................ $ 12.6 $ 6.7 $ 32.1 $ 11.5
Non-cash financing activities:
Convertible debt accretion, net of tax .............. $ 3.6 $ 4.4 $ 7.0 $ 8.6
Shares issued for acquisitions....................... $ 0.5 $ - $ 2.0 $ -
Cash is comprised of cash and short-term investments.
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
THESE INTERIM FINANCIAL STATEMENTS SHOULD BE READ IN CONJUNCTION WITH THE
ANNUAL CONSOLIDATED FINANCIAL STATEMENTS.
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CELESTICA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN MILLIONS OF U.S. DOLLARS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
1. NATURE OF BUSINESS:
The primary operations of the Company consist of providing a full range of
electronics manufacturing services including design, prototyping, assembly,
testing, product assurance, supply chain management, worldwide distribution and
after-sales service to its customers primarily in the computer and
communications industries. The Company has operations in the Americas, Europe
and Asia.
Celestica prepares its financial statements in accordance with accounting
principles which are generally accepted in Canada with a reconciliation to
accounting principles generally accepted in the United States, as disclosed in
note 22 to the 2001 Consolidated Financial Statements.
The Company experiences seasonal variation in revenue, with revenue
typically being highest in the fourth quarter and lowest in the first quarter.
2. SIGNIFICANT ACCOUNTING POLICIES:
The disclosures contained in these unaudited interim consolidated financial
statements do not include all requirements of generally accepted accounting
principles (GAAP) for annual financial statements. The unaudited interim
consolidated financial statements should be read in conjunction with the annual
consolidated financial statements for the year ended December 31, 2001.
The unaudited interim consolidated financial statements reflect all
adjustments, consisting only of normal recurring accruals, which are, in the
opinion of management, necessary to present fairly the financial position of the
Company as of June 30, 2002 and the results of operations and cash flows for the
three and six months ended June 30, 2001 and 2002.
The unaudited interim consolidated financial statements are based upon
accounting principles consistent with those used and described in the annual
consolidated financial statements, except the following:
(a) BUSINESS COMBINATIONS, GOODWILL AND OTHER INTANGIBLE ASSETS:
In September 2001, the Canadian Institute of Chartered Accountants (CICA)
issued Handbook Sections 1581 "Business combinations" and 3062 "Goodwill and
other intangible assets". The new standards mandate the purchase method of
accounting for business combinations and require that goodwill no longer be
amortized but instead be tested for impairment at least annually. The standards
also specify criteria that intangible assets must meet to be recognized and
reported apart from goodwill. The standards require that the value of the shares
issued in a business combination be measured using the average share price for a
reasonable period before and after the date the terms of the acquisition are
agreed to and announced. Previously, the consummation date was used to value the
shares issued in a business combination. The new standards are substantially
consistent with U.S. GAAP.
Effective July 1, 2001, goodwill acquired in business combinations
completed after June 30, 2001 was not amortized. In addition, the criteria for
recognition of intangible assets apart from goodwill and the valuation of the
shares issued in a business combination have been applied to business
combinations completed after June 30, 2001.
The Company has adopted these new standards as of January 1, 2002 and has
discontinued amortization of all existing goodwill. The Company has also
evaluated existing intangible assets including estimates of remaining useful
lives and has reclassed $9.1 from intellectual property to goodwill as of
January 1, 2002 to conform with the new criteria.
Section 3062 requires the completion of a transitional goodwill impairment
evaluation within six months of adoption. Impairment is identified by comparing
the carrying amounts of the Company's reporting units with their fair values. To
the extent a reporting unit's carrying amount exceeds its fair value, the
impairment is measured in a manner similar to a purchase price allocation and
must be recorded by December 31, 2002. Any
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CELESTICA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN MILLIONS OF U.S. DOLLARS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
transitional impairment would be recognized as an effect of a change in
accounting principle and would be charged to opening retained earnings as of
January 1, 2002. The Company has completed the transitional goodwill impairment
assessment during the second quarter of 2002 and has determined that no
impairment existed as of the date of adoption.
Effective January 1, 2002, the Company had unamortized goodwill of $1,137.9
which is no longer being amortized. This change in accounting policy is not
applied retroactively and the amounts presented for prior periods have not been
restated for this change. The impact of this change is as follows:
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
2001 2002 2001 2002
--------- ---------- --------- ---------
Net earnings............................... $ 15.8 $ 40.4 $ 70.6 $ 80.1
Add back: goodwill amortization............ 11.4 - 21.3 -
--------- --------- --------- ---------
Net earnings before goodwill amortization.. $ 27.2 $ 40.4 $ 91.9 $ 80.1
========= ========= ========= =========
Basic earnings per share:
Net earnings............................... $ 0.06 $ 0.16 $ 0.31 $ 0.31
Net earnings before goodwill amortization.. $ 0.11 $ 0.16 $ 0.41 $ 0.31
Diluted earnings per share:
Net earnings .............................. $ 0.06 $ 0.15 $ 0.31 $ 0.30
Net earnings before goodwill amortization.. $ 0.11 $ 0.15 $ 0.41 $ 0.30
The following table sets forth the Company's goodwill and other intangible
assets as of June 30, 2002:
ACCUMULATED NET BOOK
COST AMORTIZATION VALUE
---------- ------------ ----------
Goodwill............................ $ 1,270.2 $ 132.3 $ 1,137.9
========== ========== ==========
Other intangible assets:
Intellectual property............... $ 379.5 $ 175.8 $ 203.7
Other intangible assets............. 255.4 38.6 216.8
---------- ---------- ----------
$ 634.9 $ 214.4 $ 420.5
========== ========== ==========
Intellectual property primarily represents the cost of certain intellectual
property and process technology. Other intangible assets consist primarily of
customer relationship and contracts representing the excess of cost over the
fair value of tangible assets and intellectual property acquired in asset
acquisitions.
The aggregate amortization expense for other intangible assets was $21.7
and $43.7 for the three and six months ended June 30, 2002.
(b) STOCK-BASED COMPENSATION AND OTHER STOCK-BASED PAYMENTS:
Effective January 1, 2002, the Company adopted the new CICA Handbook
Section 3870, which requires that a fair value based method of accounting be
applied to all stock-based payments to non-employees and to direct awards of
stock to employees. However, the new standard permits the Company to continue
its existing policy of recording no compensation cost on the grant of stock
options to employees with the addition of pro forma information. The Company has
applied the pro forma disclosure provisions of the new standard to awards
granted on or after January 1, 2002. The pro forma effect of awards granted
prior to January 1, 2002 has not been included.
The standard requires the disclosure of pro forma net earnings and earnings
per share information as if the Company had accounted for employee stock options
under the fair value method. The fair value of the options issued in the quarter
and six month period were determined using the Black-Scholes option pricing
model. The
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11
CELESTICA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN MILLIONS OF U.S. DOLLARS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
following assumptions were used in the quarter: risk-free rate of
5.43%; dividend yield of 0%; a volatility factor of the expected market price of
the Company's shares of 70%; and a weighted-average expected option life of 7.5
years. The weighted-average grant date fair values of options issued during the
quarter was $23.56 per share. For purposes of pro forma disclosures, the
estimated fair value of the options is amortized to income over the vesting
period. For the three months ended June 30, 2002, the Company's pro forma net
earnings is $40.1, basic earnings per share is $0.16 and diluted earnings per
share is $0.15. For the six months ended June 30, 2002, the Company's pro forma
net earnings is $79.6, basic earnings per share is $0.31 and diluted earnings
per share is $0.30. The Company's stock option plans are described in note 11 to
the annual consolidated financial statements.
3. ACQUISITIONS:
ASSET ACQUISITIONS:
On March 31, 2002, the Company acquired certain assets located in Miyagi
and Yamanashi, Japan from NEC Corporation. The purchase price was financed with
cash and was allocated to the net assets acquired, based on their relative fair
values at the date of acquisition. The fair value allocation of the purchase
price is subject to refinement as the Company is in the process of obtaining
third-party valuations.
4. OTHER CHARGES:
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
2001 2002 2001 2002
--------- ------- --------- -------
Restructuring.............................. $ 53.2 $ - $ 57.0 $ -
========= ======= ========= =======
In 2001, the Company recorded a restructuring charge that reflected
facility consolidations and a workforce reduction. The following table details
the activity through the accrued restructuring liability for the period ended
June 30, 2002:
EMPLOYEE LEASE AND OTHER FACILITY
TERMINATION CONTRACTUAL EXIT COSTS
COSTS OBLIGATIONS AND OTHER TOTAL
------------ --------------- ----------- ----------
Balance at March 31, 2002........... $ 25.8 $ 30.8 $ 8.6 $ 65.2
Cash payments....................... (12.1) (3.3) (2.0) (17.4)
----------- ----------- ----------- -----------
Balance at June 30, 2002............ $ 13.7 $ 27.5 $ 6.6 $ 47.8
========== ========== ========== ==========
As of December 31, 2001, 2,330 employee positions remain to be terminated
during 2002. 1,521 employees were terminated during the first half of 2002. The
Company expects to complete the major components of the restructuring plan by
the end of 2002, except for certain long-term lease contractual obligations.
5. SEGMENTED INFORMATION:
The Company's operations fall into one dominant industry segment, the
electronics manufacturing services industry. The Company manages its operations,
and accordingly determines its operating segments, on a geographic basis. The
performance of geographic operating segments is monitored based on EBIAT
(earnings before interest, income taxes, amortization of intangible assets,
other charges and integration costs related to acquisitions). Inter-segment
transactions are reflected at market value. The following is a breakdown by
operating segment.
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12
CELESTICA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN MILLIONS OF U.S. DOLLARS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
2001 2002 2001 2002
-------------- ------------- ------------ ------------
REVENUE
Americas.................................... $ 1,712.8 $ 1,308.8 $ 3,408.4 $ 2,668.2
Europe...................................... 839.0 480.6 1,743.9 950.9
Asia........................................ 196.9 533.4 411.9 934.1
Elimination of inter-segment revenue........ (88.0) (73.6) (210.9) (152.5)
------------ ------------ ------------- -------------
$ 2,660.7 $ 2,249.2 $ 5,353.3 $ 4,400.7
=========== =========== ============ ============
EBIAT
Americas.................................... $ 55.3 $ 44.1 $ 107.9 $ 84.4
Europe...................................... 40.5 11.8 81.7 27.2
Asia........................................ 10.0 26.1 20.4 45.8
---------- ---------- ------------ ------------
105.8 82.0 210.0 157.4
Interest, net............................... 2.4 (1.4) 6.0 (3.1)
Amortization of goodwill and other intangible
assets...................................... (28.1) (21.7) (57.7) (43.7)
Integration costs related to acquisitions... (7.8) (10.2) (10.1) (14.1)
Other charges............................... (53.2) - (57.0) -
---------- ---------- ------------ ------------
Earnings before income taxes................ $ 19.1 $ 48.7 $ 91.2 $ 96.5
========== ========== ============ ============
AS AT JUNE 30
2001 2002
---------- ------------
TOTAL ASSETS
Americas.................................... $ 3,773.2 $ 3,381.5
Europe...................................... 1,793.2 1,546.7
Asia........................................ 435.1 1,893.4
---------- -----------
$ 6,001.5 $ 6,821.6
========== ============
The following table sets forth the changes in goodwill by operating segment
during the six months ended June 30, 2002:
GOODWILL DECEMBER 31, 2001 ADJUSTMENT JUNE 30, 2002
----------------- -------------- ---------------
Americas.................................... $ 243.2 $ 1.8 $ 245.0
Europe...................................... 68.3 6.2 74.5
Asia........................................ 817.3 1.1 818.4
---------- -------- ----------
$ 1,128.8 $ 9.1 $ 1,137.9
========== ======== ==========
The Company has reclassed from intellectual property $9.1 to goodwill as of
January 1, 2002 to conform with the new goodwill standards.
6. WEIGHTED AVERAGE SHARES OUTSTANDING:
For the three and six months ended June 30, 2002, the weighted average
number of shares outstanding for purposes of the diluted earnings per share
calculation, excludes the effect of convertible securities as they are
anti-dilutive.
7. SUBSEQUENT EVENTS:
In July 2002, the Company made the following announcements:
The Company announced a plan to redeem the $130.0 in Senior Subordinated Notes
due 2006 in accordance with their terms. The cost of the redemption will be
$136.8 (including a 5.25% redemption premium) and will be financed from cash on
hand;
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13
CELESTICA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN MILLIONS OF U.S. DOLLARS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
The Company announced a plan to file a Normal Course Issuer Bid to repurchase,
at its discretion, up to 5% of the Company's Subordinate Voting Shares for
cancellation, over the next 12 months. This plan is subject to the approval of
the Toronto Stock Exchange; and
In response to the current end-market conditions, the Company announced that it
would incur a pre-tax restructuring charge of between $300 - $375, to be
recorded in the third and fourth quarters of 2002. The Company expects the cash
cost to be approximately $150.
-30-
CELESTICA INC.
SUPPLEMENTAL INFORMATION
(in millions of US dollars, except per share amounts)
(unaudited)
- ----------------------------------------------------------------------------------------------------------------------------------
Q2 2000 Q3 2000 Q4 2000 Q1 2001 Q2 2001 Q3 2001 Q4 2001
----------------------------------------------------------------------------
REVENUE $ 2,091.9 $ 2,600.1 $ 3,447.8 $ 2,692.6 $ 2,660.7 $ 2,203.0 $ 2,448.2
GAAP
NET EARNINGS (LOSS) 41.4 55.7 83.5 54.8 15.8 (38.7) (71.8)
Convertible debt accretion, net of tax - (2.1) (3.3) (3.4) (3.6) (3.9) (4.1)
----------------------------------------------------------------------------
Earnings (loss) available to shareholders - basic 41.4 53.6 80.2 51.4 12.2 (42.6) (75.9)
Earnings (loss) per share - basic $ 0.20 $ 0.26 $ 0.39 $ 0.25 $ 0.06 $ (0.20) $ (0.33)
============================================================================
Earnings (loss) per share - diluted (1)(2) $ 0.20 $ 0.25 $ 0.38 $ 0.25 $ 0.06 $ (0.20) $ (0.33)
============================================================================
Weighted average number of shares (in millions)
outstanding - basic 202.7 203.0 203.2 203.6 207.0 218.1 227.1
- diluted (1)(2) 211.9 220.0 222.6 223.1 225.5 218.1 227.1
Actual number of shares (in millions)
outstanding - basic 202.8 203.2 203.4 203.8 216.3 219.9 229.7
- ---------------------------------------------------------------------------------------------------------------------------------
ADJUSTED NET EARNINGS
Net earnings (loss) $ 41.4 $ 55.7 $ 83.5 $ 54.8 $ 15.8 $ (38.7) $ (71.8)
Adjustments:
Amortization of intangible assets 19.2 25.6 28.8 29.6 28.1 32.2 35.1
Integration costs related to acquisitions 4.9 4.8 5.7 2.3 7.8 10.0 2.6
Other charges - - - 3.8 53.2 79.6 136.5
Income tax effect of above (1.8) (2.2) (1.0) (3.2) (11.8) (18.4) (26.9)
----------------------------------------------------------------------------
Adjusted net earnings $ 63.7 $ 83.9 $ 117.0 $ 87.3 $ 93.1 $ 64.7 $ 75.5
============================================================================
As a percentage of revenue 3.0% 3.2% 3.4% 3.2% 3.5% 2.9% 3.1%
Adjusted net earnings per share - basic $ 0.31 $ 0.40 $ 0.56 $ 0.41 $ 0.43 $ 0.28 $ 0.31
============================================================================
Adjusted net earnings per share - diluted* (1) $ 0.30 $ 0.38 $ 0.53 $ 0.39 $ 0.41 $ 0.27 $ 0.31
============================================================================
- ----------------------------------------------------------------------------------------------------------------------------------
EBITDA
Net earnings (loss) $ 41.4 $ 55.7 $ 83.5 $ 54.8 $ 15.8 $ (38.7) $ (71.8)
Income taxes 13.1 17.5 26.3 17.3 3.3 (7.9) (14.7)
----------------------------------------------------------------------------
EBT 54.5 73.2 109.8 72.1 19.1 (46.6) (86.5)
Integration costs related to acquisitions 4.9 4.8 5.7 2.3 7.8 10.0 2.6
Other charges - - - 3.8 53.2 79.6 136.5
----------------------------------------------------------------------------
EBT 59.4 78.0 115.5 78.2 80.1 43.0 52.6
Interest expense (income), net (6.3) (5.2) (5.7) (3.5) (2.4) (5.1) 3.2
----------------------------------------------------------------------------
EBIT 53.1 72.8 109.8 74.7 77.7 37.9 55.8
Amortization of intangible assets 19.2 25.6 28.8 29.6 28.1 32.2 35.1
----------------------------------------------------------------------------
EBIAT 72.3 98.4 138.6 104.3 105.8 70.1 90.9
3.5% 3.8% 4.0% 3.9% 4.0% 3.2% 3.7%
----------------------------------------------------------------------------
EBITDA $ 101.4 $ 131.1 $ 175.2 $ 143.9 $ 148.5 $ 121.6 $ 149.8
============================================================================
4.8% 5.0% 5.1% 5.3% 5.6% 5.5% 6.1%
- ----------------------------------------------------------------------------------------------------------------------------------
Q1 2002 Q2 2002 1H 2001 1H 2002 FY 2000 FY 2001
-----------------------------------------------------------------
REVENUE $ 2,151.5 $ 2,249.2 $ 5,353.3 $ 4,400.7 $ 9,752.1 $10,004.4
GAAP
NET EARNINGS (LOSS) 39.7 40.4 70.6 80.1 206.7 (39.8)
Convertible debt accretion, net of tax (4.2) (4.4) (7.0) (8.6) (5.4) (15.0)
-----------------------------------------------------------------
Earnings (loss) available to shareholders - basic 35.5 36.0 63.6 71.5 201.3 (54.8)
Earnings (loss) per share - basic $ 0.15 $ 0.16 $ 0.31 $ 0.31 $ 1.01 $ (0.26)
=================================================================
Earnings (loss) per share - diluted (1)(2) $ 0.15 $ 0.15 $ 0.31 $ 0.30 $ 0.98 $ (0.26)
=================================================================
Weighted average number of shares (in millions)
outstanding - basic 229.8 230.2 204.7 230.0 199.8 213.9
- diluted (1)(2) 236.8 236.0 223.7 236.5 211.8 213.9
Actual number of shares (in millions)
outstanding - basic 230.1 230.3 216.3 230.3 203.4 229.7
- ----------------------------------------------------------------------------------------------------------------------
ADJUSTED NET EARNINGS
Net earnings (loss) $ 39.7 $ 40.4 $ 70.6 $ 80.1 $ 206.7 $ (39.8)
Adjustments:
Amortization of intangible assets 22.0 21.7 57.7 43.7 88.9 125.0
Integration costs related to acquisitions 3.9 10.2 10.1 14.1 16.1 22.8
Other charges - - 57.0 - - 273.1
Income tax effect of above (2.2) (2.9) (15.0) (5.1) (7.6) (60.5)
-----------------------------------------------------------------
Adjusted net earnings $ 63.4 $ 69.4 $ 180.4 $ 132.8 $ 304.1 $ 320.6
=================================================================
As a percentage of revenue 2.9% 3.1% 3.4% 3.0% 3.1% 3.2%
Adjusted net earnings per share - basic $ 0.26 $ 0.28 $ 0.85 $ 0.54 $ 1.50 $ 1.43
=================================================================
Adjusted net earnings per share - diluted* (1) $ 0.26 $ 0.28 $ 0.81 $ 0.53 $ 1.44 $ 1.38
=================================================================
-----------------------------------------------------------------
EBITDA
Net earnings (loss) $ 39.7 $ 40.4 $ 70.6 $ 80.1 $ 206.7 $ (39.8)
Income taxes 8.1 8.3 20.6 16.4 69.2 (2.1)
-----------------------------------------------------------------
EBT 47.8 48.7 91.2 96.5 275.9 (41.9)
Integration costs related to acquisitions 3.9 10.2 10.1 14.1 16.1 22.8
Other charges - - 57.0 - - 273.1
-----------------------------------------------------------------
EBT 51.7 58.9 158.3 110.6 292.0 254.0
Interest expense (income), net 1.7 1.4 (6.0) 3.1 (19.0) (7.9)
-----------------------------------------------------------------
EBIT 53.4 60.3 152.3 113.7 273.0 246.1
Amortization of intangible assets 22.0 21.7 57.7 43.7 88.9 125.0
-----------------------------------------------------------------
EBIAT 75.4 82.0 210.0 157.4 361.9 371.1
3.5% 3.6% 3.9% 3.6% 3.7% 3.7%
-----------------------------------------------------------------
EBITDA $ 131.3 $ 137.2 $ 292.3 $ 268.5 $ 483.8 $ 563.8
=================================================================
6.1% 6.1% 5.5% 6.1% 5.0% 5.6%
-----------------------------------------------------------------
(1) Restated to reflect treasury stock method, retroactively applied.
(2) Q3, Q4, and FY2001 excludes options and convertible debt as they are
anti-dilutive due to the losses. Q1, Q2 and 1H 2002 excludes
convertible debt as it is anti-dilutive. Convertible debt accretion
must be deducted from net earnings to calculate diluted EPS.
* Adjusted net earnings per share - diluted:
For Q3, Q4 and FY 2001, the diluted weighted average shares (in
millions) for "Adjusted net earnings" is 235.7, 244.5 and 232.9,
respectively.
For Q1 2002, the diluted weighted average shares for "Adjusted
net earnings" is 247.1 million.
For Q2 and 1H 2002, the diluted weighted average shares (in
millions) for "Adjusted net earnings" is 236.0 and 236.5,
respectively, and excludes convertible debt as it is anti-dilutive.
Convertible debt accretion must be deducted from net earnings to
calculate diluted EPS.
Exhibit 99.3
Wednesday, July 17, 2002
CELESTICA TO REDEEM ALL OF ITS 10 1/2% SENIOR SUBORDINATED NOTES DUE 2006
TORONTO, Canada - Celestica Inc. (NYSE, TSE: CLS), a world leader in electronics
manufacturing services (EMS), today announced that it will redeem all of its
10 1/2% Senior Subordinated Notes due 2006. The redemption is in accordance with
their terms at a redemption price of 105.25% of the principal amount, together
with accrued and unpaid interest to the redemption date. The company expects
that the redemption date will occur prior to the end of the third quarter. The
outstanding principal amount of the notes is $130 million. The redemption will
be financed out of the company's existing cash resources.
ABOUT CELESTICA
- ---------------
Celestica is a world leader in the delivery of innovative electronics
manufacturing services (EMS). With 2001 revenues in excess of US$10 billion,
Celestica is a global operator of a highly sophisticated manufacturing network,
providing a broad range of services to leading OEMs (original equipment
manufacturers) in the information technology and communications industries.
Unrivalled in quality, technology and supply chain management, Celestica
provides competitive advantage to its customers by improving time-to-market,
scalability and manufacturing efficiency. Celestica has more than 40,000
employees in over 40 locations in the Americas, Europe and Asia.
For further information on Celestica, visit its Web site at www.celestica.com.
The company's security filings can also be accessed at www.sedar.com and
www.sec.gov.
SAFE HARBOUR AND FAIR DISCLOSURE STATEMENT
- ------------------------------------------
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; LOWER-THAN-EXPECTED CUSTOMER DEMAND; COMPONENT
CONSTRAINTS; 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 VARIOUS PUBLIC FILINGS AT www.sedar.com AND http://www.sec.gov.
AS OF ITS DATE, THIS PRESS RELEASE CONTAINS ALL MATERIAL INFORMATION ASSOCIATED
WITH THIS EVENT.
Contacts:
Laurie Flanagan Paul Carpino
Celestica Global Communications Celestica Investor Relations
(416) 448-2200 (416) 448-2211
media@celestica.com clsir@celestica.com
Exhibit 99.4
Wednesday, July 17, 2002
CELESTICA ANNOUNCES NORMAL COURSE ISSUER BID
Celestica to repurchase up to 5% of Subordinate Voting Shares
TORONTO, Canada - Celestica Inc. (NYSE, TSE: CLS), a world leader in electronics
manufacturing services (EMS), today announced its intention to launch a Normal
Course Issuer Bid, subject to the approval of the Toronto Stock Exchange. If
approved, the company will be authorized to repurchase, at its discretion during
the next 12 months, up to 5% of the company's subordinate voting shares on the
open market subject to the normal terms and limitations of such bids.
"We feel that Celestica represents a leadership franchise in the EMS industry
with exceptional financial strength," said Anthony Puppi, executive vice
president and CFO. "This stock repurchase program is a reflection of the
confidence we have in the company and the commitment we have to using our
balance sheet strength to generate economic value."
ABOUT CELESTICA
- ---------------
Celestica is a world leader in the delivery of innovative electronics
manufacturing services (EMS). With 2001 revenues in excess of US$10 billion,
Celestica is a global operator of a highly sophisticated manufacturing network,
providing a broad range of services to leading OEMs (original equipment
manufacturers) in the information technology and communications industries.
Unrivalled in quality, technology and supply chain management, Celestica
provides competitive advantage to its customers by improving time-to-market,
scalability and manufacturing efficiency. Celestica has more than 40,000
employees in over 40 locations in the Americas, Europe and Asia.
For further information on Celestica, visit its Web site at www.celestica.com.
The company's security filings can also be accessed at www.sedar.com and
www.sec.gov.
SAFE HARBOUR AND FAIR DISCLOSURE STATEMENT
- ------------------------------------------
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; LOWER-THAN-EXPECTED CUSTOMER DEMAND; COMPONENT
CONSTRAINTS; 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 VARIOUS PUBLIC FILINGS AT www.sedar.com AND http://www.sec.gov.
AS OF ITS DATE, THIS PRESS RELEASE CONTAINS ALL MATERIAL INFORMATION ASSOCIATED
WITH THIS EVENT.
Contacts:
Laurie Flanagan Paul Carpino
Celestica Global Communications Celestica Investor Relations
(416) 448-2200 (416) 448-2211
media@celestica.com clsir@celestica.com