Celestica Posts Record Numbers
Celestica Inc. (Toronto) reported record annual revenue for the year ended December 31, 1998, of $3.2 billion, up 62 percent from $2.0 billion in 1997. The company reported a net loss for the year 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. Adjusted net earnings for 1998, which exclude the after-tax effect of integration costs related to acquisitions, unusual charges and amortization of intangible assets, were $45.3 million, or $0.84 per diluted share, compared to $23.3 million, or $0.65 per diluted share, a year ago. Revenues for the fourth quarter ended December 31, 1998, were $925.3 million, a 35 percent increase from $683.2 million for the same period a year ago. Net loss for the quarter was $3.8 million, or $0.06 per share, compared to net earnings of $2.0 million, or $0.05 per share, for the same period last year. Adjusted net income for the quarter was $18.7 million, or $0.27 per diluted share, compared to $12.3 million, or $0.32 per diluted share, for the same period of 1997."1998 was a year of outstanding achievements for Celestica," stated President and CEO Eugene Polistuk. "Eight acquisitions enhanced our service offerings, global manufacturing capabilities and our strategic customer relationships. Furthermore, our financial results for the year were solid and our IPO significantly improved our financial position for growth."Polistuk added, "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 seven countries, added approximately 12,000 people and improved our market and customer diversification. We now have the infrastructure in place to achieve our strategic goal of $10 billion in sales by year 2001."Celestica also announced the appointment of Robert Crandall as Chairman of the Board, effective February 8, 1998. Crandall, who has been a director of Celestica since July 1998, will also join the company's executive committee, together with Polistuk and Tony Melman.