CELESTICA

'Celestica Inc.' ( ) is a multinational electronics manufacturing services (EMS) company headquartered in Toronto, Canada. Celestica operates a global manufacturing network with operations in Asia, Europe and the Americas, providing a broad range of integrated services and solutions to leading OEMs (original equipment manufacturers).

Contents

History

Operations

Restructuring

Celestica Site located in Reynosa, Mexico

Celestica Site located in Cebu, Philippines

Controversy

External links

References

History

Celestica was incorporated as a wholly owned subsidiary of IBM in January 1994. Onex Corporation acquired Celestica in October 1996 and controls approximately 80% of the company's voting shares.

Operations

Celestica’s global manufacturing network comprises more than 40 locations in the Americas, Europe and Asia. The company's global services include design and engineering, manufacturing and systems assembly, fulfillment and after-market services.

Restructuring

In recent years, Celestica has gone through five rounds of "restructuring" and has eliminated over 27,000 employees.^[3] In one of the most recent reorganizations in 2005, Celestica eliminated most internal IT operations and outsourced them to IBM India. Other changes include reductions in retirement benefits, and the elimination of some people from eligibility for its bonus payments. (Currently one must be employed when the bonus is paid out to receive it. Before this one only had to be employed up to the end of the fiscal year.)
After 2007's quarter 1 loss of $34.3 million USD there was talk about the possible sale of Celestica's headquarters in Toronto. ^[4]

Celestica Site located in Reynosa, Mexico

One of the leading facilities which manage After Market Services (CAMS) is the one located in Reynosa, Mexico, a city located in the northern state of Tamaulipas. This site offers after market services such as repair, refurbish and retesting of several products for several customers. The list of customers this site has Business Units (BU) include:
'Motorola' - this B.U. is widely dedicated to repairing and refurbishing several models, such as V551, V557, V3, V3c, V325, MotoQ

'Palm' - it repairs and refurbishes smartphones such as Treo 600, Treo 650, Treo 700, and some other handheld models.

'RIM' - BlackBerry smartphones such as Charm C and Charm D

'Sun Microsystems'- microprocesor modules for wide range of Network Servers

'Lucent Technologies' - radio base electronic cards for mobile technologies

'HP' - displays and monitors

'Avaya' - wireless phones, hubs and phone handsets

Competition for this site include Solectron, Foxconn, Jabil Global Services, Teleplan, which all of the last 3 also have facilities in Reynosa.

Celestica Site located in Cebu, Philippines

Celestica Cebu was formerly a NEC (Nippon Electronics Company) Site. By April 1, 2004, NTEP (NEC Technologies Philippines) was acquired by Celestica Corporate and given the name CPH (Celestica Philippines, Inc.). The products manufactured in CPH are:
ADSL Modem

Media Converter

Champ Amplifier

VDSL Layer 2 Switch

DSLAM

Line Termination Unit

VDSL Modem

Cable TV Home Terminal

Integrated Gateway Unit

Controversy

On Friday, January 12, a shareholder class action suit was filed in New York against Celestica and members of the company’s executive team.
The complaint alleges that the company made materially false and misleading statements about the business and failed to disclose adverse facts, namely:
(i) that the Company was experiencing declining demand in its Mexican operations and that the division was carrying significant amounts of unneeded inventory which would have to be written off;
(ii) that the Company was experiencing declining demand in its Information Technology (IT) and Communications market segments as its larger customers scaled back purchases; and that the stock dropped when this information later became public.
This class action suit is still being solved as of January 25, 2007.

External links

★ Company Website

★ Company security filings

★ Company security filings

★ EMS Research On Celestica By iSuppli

References

1. CLS: Income Statement
2. CLS: Profile for Celestica
3. Celestica says bad run nearing end
4. Celestica Q1 loss doubles to US.3 million, company may sell HQ