Celestica To Wind Down Manufacturing Services For Research In Motion

Celestica has released a press release stating that they will be winding down manufacturing services for Research In Motion over the next three to six months. Celestica has stated in the following press release that they expect restructuring charges to be less than $35 million. Celestica will take a $1 billion charge for unsold BlackBerry device inventory. Hit the break for more.

Celestica To Wind Down Manufacturing Services For Research In Motion

June 18, 2012

TORONTO, Canada – Celestica Inc. (NYSE, TSX: CLS), a global leader in the delivery of end-to-end product lifecycle solutions, today announced that over the course of the next three to six months, it will wind down its manufacturing services for Research in Motion (RIM).

Celestica has been a high-performing manufacturing supplier for RIM and will work closely with RIM throughout the transition. As discussed on the company’s first quarter results conference call on April 24, Celestica has been working with RIM as it assesses its supply chain strategy. Celestica estimates that prior to any recoveries, its restructuring charges will not exceed $35 million.

More details about this announcement will be provided as part of the company’s second-quarter results press release and conference call, which are scheduled for Friday, July 27.

In addition, Celestica is reaffirming its second quarter financial guidance that was provided on April 24. The company anticipates revenue to be in the range of $1.65 billion to $1.75 billion, and adjusted net earnings per share to be in the range of $0.20 to $0.26.

Let us know what you think about this press release in the comments.

 

 

Share/Bookmark
  • Accuberry

    I don’t believe it’s Celestica who is slowing down, I believe its RIM moving away from them. Remember RIM is changing, its out with the old & in with the new.